SMU Data and Models
January 26, 2017
SMU Price MoMo Index Continues to Drift
Written by Brett Linton
The Steel Market Update (SMU) Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained positive for the eleventh consecutive week, following a 17 week long 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 in prices.
MoMo should not be confused with the SMU Price Momentum Indicator which is a forward looking indicator. The SMU Price Momentum Indicator is currently at Higher indicating that steel prices are expected to rise over the next 30 days.
