SMU Data and Models
April 10, 2017
SMU Price Momentum Indicator Adjusted from Higher to Neutral
Written by John Packard
On Friday Steel Market Update (SMU) adjusted our flat rolled steel Price Momentum Indicator to Neutral from Higher. The key reason behind our decision to move our indicator is “indecision” in the marketplace. More about that in a moment.
The current market cycle began on October 21, 2016 when the domestic mills were able to reverse direction through the use of a price increase announcement. At that time, Steel Market Update went to Neutral as we waited to see if the market would follow the steel mills’ lead. By October 30, 2016 we had seen enough evidence to take Momentum to Higher where it has stayed with the exception of the month of February where challenges to the industry prompted SMU to go back to Neutral before returning to Higher on the 7th of April.
