January 27, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Open Top Scrap Gondola Trailers, January 27th, 2020.
U.S. weekly steel production rose to 1.928 Million tons on slow demand, as hopes remain on faster growth.
Oil fell hard to $54.49 a barrel, on concerns about the China virus and a good global supply of oil.
U.S. weekly oil production was steady at 13 million barrels per day, the all-time record it hit two weeks ago. This is great for U.S. jobs and means less Imports of Middle East oil.
Iron ore rose slightly to $96/Ton, on positive China manufacturing data.
Scrap steel #1 HMS price was steady at $259.33/GT on slowing global demand; especially in Europe, as prices are set to fall $15/GT or more in February.
Hot roll coil steel fell to $30.09/Hundred, on slow demand and could fall further as scrap prices fall.
Copper fell hard to $2.68 per pound as the world becomes more concerned about the spreading virus that started in China.
Aluminum fell slightly to 80.8 cents per pound, as pressure remains both up and down in global markets.
The IMF, the International Monetary Fund, issued a new set of forecasts last week. The Global economy is set to accelerate this year, 2020 to 3.3% and grow faster in 2021 to 3.4%. Great News.
IMF’s China Forecast slows this year, 2020 to 6.0% and slower in 2021 to 5.8%. Yes slowing, but very fast.
IMF’s U.S. Forecast is that we slow this year 2020 to 2.0% and then slower in 2021 to 1.7%. This is a very, very serious problem. The White House said the 2018 tax cut was to accelerate growth to 4, 5 and 6% or more. It was also said we would pay off the National debt in 8 years, but the exact opposite is happening. We are slowing and slow growth in bringing more debt. Now, there is White House talk of another tax cut, to boost growth as the white House is forecasting 3.0% for 2020, which is 50% higher than IMF’s 2.0% forecast.
Pic. January’s Eurozone (an economy about the size of the U.S.), had its Manufacturing PMI index rise to 47.8. Note, below 50 means contraction. Yes, this is a bit complicated. Under 50 means contraction, so rising to 47.8 means their manufacturing is contracting at a slower rate. It is the 12th straight month of contraction, BUT new orders stabilized and business sentiment improved.
January’s U.S. Manufacturing PMI index fell to 51.7, on the slowest increase in factory activity in three months. New business growth was marginal as demand softened and backlogs fell.
Wall Street’s Dow Jones Average fell to 28,990 on concerns about the China virus spreading globally. It remains near the all-time high, which is great news.
Not everyone knows BENLEE builds the best Open Top Gondola Scrap Trailer in the business. The most popular lengths are 48’ and 53’, with 8’ high sides. They are optimized for weight to carry more, but are a robust design. Call us for a quote.
As always, feel free to call, leave a message on LinkedIn or email me with any questions and we hope all have a Safe and Profitable week.