Utilizing a trailing average Hot Rolled Coil (HRC) price, the SMU/Steel Reality price momentum meter (MoMo) for flat rolled steel in the US remained below 0% this past week for the 11th straight week of negative readings. Momentum is based upon the current HRC price weighed against the previous 12 week average spot price as recorded by Steel Market Update (SMU). Posting a -2.24%, price momentum fell 0.08% over last week’s recording of -2.16%. The graph below demonstrates the relationship between Hot Rolled Coil (HRC) and the momentum in pricing.
The Steel Market Update (SMU) Price Momentum Indicator (not to be confused with MoMo) – currently at Lower – acts as a leading indicator as it factors in ongoing negotiations, imports and import pricing, domestic mill lead times and other factors in order to forecast the direction we see prices moving within a 30 to 60 day window. The SMU/Steel Reality Momentum Meter – is stable to slightly negative – serves as a lagging indicator demonstrating the historical price momentum trend.
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