SMU Data and Models
August 26, 2013
SMU Price Momentum Indicator Adjusted to Neutral
Written by John Packard
On Friday, August 23rd, Steel Market Update adjusted our SMU Price Momentum Indicator from “Higher” to “Neutral.” This change is meant to be an indicator of the direction we expect flat rolled steel prices to move over the next 30 days. Prior to Friday our Indicator was set at Higher for 10.5 weeks going back to the later part of May.
SMU chose to make our adjustment at this time due to market sources advising SMU of weakness at the galvanized conversion mills. This included us seeing an email from one of the conversion mills advising one of their customers that for larger orders the mill would consider “special pricing.”
