SMU Data and Models
May 25, 2016
SMU HR Price MoMo Index Indicating Higher Prices for 21st Week
Written by Brett Linton
The Steel Market Update (SMU) Price Momentum Index (MoMo) for hot rolled steel in the United States indicated prices continue to rise albeit at a slightly slower pace than what we measured last week. MoMo has been positive (indicating higher prices) for the 21st consecutive week, following a 21 week negative streak. MoMo is a trailing indicator and is measured as a percentage which shows the relationship between the current U.S. hot rolled coil price movements against the previous 12-week average spot price as recorded by Steel Market Update. A positive MoMo index indicates hot rolled steel prices are increasing, while a negative index number indicates a decline in prices.
MoMo should not be confused with the SMU Price Momentum Indicator which is a forward looking indicator and is currently pointing toward higher pricing over the next 30 to 60 days.
