SMU HR Price MoMo Index Indicating Pace of Increases Slowing

There are two headlines when reviewing our MoMo Index this week. The first is our Index has been in positive territory for 23 consecutive weeks. The second is showing the relationship in the current price movement compared against the 12 week moving average is in decline. That steep rise we saw earlier is pulling back (see graphic below).

The Steel Market Update (SMU) Price Momentum Index (MoMo) for hot rolled steel in the United States remained positive for the 23rd consecutive week, following a 21 week negative streak. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous 12-week average price as a percentage. A positive MoMo index indicates hot rolled steel prices are moving in an upward direction compared to the previous 12 week period, while a negative index number indicates a downward direction of prices.