April 22, 2019
This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Open Top Scrap Gondola Trailers, April 22nd 2019.
U.S. steel production fell slightly to 1.915 Million tons. Tariffs remain supporting production as it stays near multi year highs.
Oil rose slightly to $64.00/barrel near a multi-month high on OPEC cuts and unrest in Libya which is reducing production.
U.S. oil production was steady at 12.2 Million barrels a day, the new all-time it hit two weeks ago. Great U.S. Economic News.
Iron ore fell remaining high at $93.50 as global markets remain in a slow growth mode and as China stimulates their economy.
Scrap steel #1 was steady at $295/GT on a slow growth economy. Good supply may bring lower prices of $10/GT or more in May.
Hot roll coil steel fell slightly to $33.96 on slight market weakening in automotive and construction markets. This is good for keeping inflation down.
Copper fell slightly to $2.92, staying in a fairly high range on major Chinese government economic stimulus to help support China’s slowing, but over 6% growth, which remains faster than our 2.3% growth.
Aluminum rose slightly to 83.9 cents, on slow growth, remaining near a multi-year low and on enormous Chinese exports as well slowing construction and vehicle markets.
For those that missed it last week, Cardboard scrap fell to a multiyear low of $50/ton on very weak Chinese demand as they reduce scrap imports and as scrap generation from within China grows.
The Chinse economy grew 6.4% in the March quarter, the same pace as the previous quarter which is about double U.S. growth. Industrial output and consumer demand strengthened, amid the government’s pro-growth strategies.
March’s U.S. Housing starts fell to near a 2 year low to a seasonably adjusted annual rate of 1.139 Million units, the biggest decline in nearly two years. Multi-family housing was steady, but single-family homes were the lowest since Sept 2016, 2 and a half years ago, with flooding in the Midwest a factor.
February’s U.S. Trade deficit was the smallest in 8 months as exports of civilian aircraft rose by $2.2 Billion and automotive vehicle and parts rose $600 Million. Trade gap narrowed with China, the EU and Canada, but grew with Mexico.
The U.S. home builder’s index rose to a 6-month high as buyer traffic picked up and builders felt better about selling single family homes. As a negative, prospects for sales over the next 6 months dropped a bit.
U.S. Manufacturing continued to grow in April, but growth remained near a two-year low. As a positive, output and new orders rose, while employment growth was the weakest since June 2017.
U.S. March Retail sales spiked up 1.6% with major growth in motor vehicles, gasoline and clothing. A great economic driver.
Initial weekly unemployment claims fell to 192,000, a new 50 year low as companies hold onto employees in this continued environment where it is tough to find people. Great news.
Wall Street’s Dow Jones Average rose ending at 26,560 on stable slow growth and good corporate earnings.
As always, feel free to call or email me with any questions and we hope all have a Safe and Profitable week.