SMU Data and Models
SMU HR Price MoMo Index Lower Pricing Trend in Seventh Month
Written by Brett Linton
February 25, 2015
This week the Steel Market Update Price MoMo Index for flat rolled steel in the U.S. is showing hot rolled coil price momentum continuing its downward trend for the 27th week in a row (6+ months!). MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price movements against the previous 12-week average spot price as recorded by Steel Market Update.
MoMo was measured at -11.11 percent this week, meaning that the current HRC price is lower than the average price over the last 12 weeks.
The change in MoMo can be a useful indicator in depicting the severity of price movements and evaluating the directional trend for flat rolled steel pricing. The week-over-week change in MoMo was -1.07 percent, following a +2.34 percent change the week before. This indicates that hot rolled prices are declining compared to the previous week.
Looking at this change on a 3-week moving average, we see the trend for HRC prices is back to negative after slightly poking into positive territory last week. The 3-week average change in MoMo is -0.75 percent, following a change of +0.01 the week before.
The interactive graph below demonstrates the relationship between the SMU hot rolled coil price, the SMU Price MoMo Index, and the three week moving average change in the MoMo Index. Published in our Tuesday evening issue, the SMU HRC price range for this week is $480-$520 per ton with an average price of $500, down $15 from last week.
SMU Note: You can view the interactive graphic on our Price MoMo Index below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at info@SteelMarketUpdate.com or 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”138″ SMU HR Price MoMo Index and 3 Week Average Change – Prices Pricing Hot Rolled}
Brett Linton
Read more from Brett LintonLatest in SMU Data and Models
SMU Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Buyers report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.
SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.
Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.