SMU Data and Models
SMU HR Price MoMo Index Turns Positive After 37 Weeks
Written by Brett Linton
May 13, 2015
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. is showing positive hot rolled coil price momentum after being negative for 37 consecutive weeks. 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 0.76 percent this week, meaning that the current HRC price is higher 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 +3.99 percent, following a change of +3.04 last week. This positive change indicates that the movement in hot rolled prices is accelerating in comparison to the previous week.
To get a wider sense of the change in the MoMo Index, we calculate a 3-week average change. The 3-week average change in the MoMo Index is +2.86 percent, following a change of +1.85 percent the week before. This shows that the movement in hot rolled prices is also accelerating when viewed over a longer period.
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 $450-$490 per ton with an average price of $470, up $15 per ton 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 need any assistance, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”138″ SMU HR Price MoMo Index and 3 Week Average Change – Prices Pricing Hot Rolled}
Brett Linton
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