November 25, 2019
This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Open Top Scrap Gondola Trailers, November 25th, 2019.
U.S. steel production rose to 1.876 Million tons, on slowing growth, as there is mixed data on will growth pick up or slow down over the next year.
Oil was steady at $57.94 a barrel, on OPEC cuts and slow economic growth. Low gasoline prices are great for the U.S. Consumer.
U.S. weekly oil production was steady at the record 12.8 million barrels per day. Great economic news. Shale oil growth is leading vs. traditional oil rigs, so less steel is being used due to less traditional oil rigs.
Iron ore rose to $84.50/M Ton on slow global economic growth.
Steel scrap #1 HMS was steady at $202.67 on continued slow growth. December could possibly have prices up $10 to $20/GT or more due to slow flow into Recycling Yards.
Hot roll coil steel rose to $27.29/Hundred on higher scrap prices and slightly higher demand.
Copper rose to $2.65, near the multi week high as markets continue to look for growth.
Aluminum was steady at 79.2 cents, also as markets continue to look for growth.
November’s Eurozone Manufacturing Index Rose, an economy only slightly smaller than the U.S., but is still in contraction, so contracting slower. This was the 10th Month of slower factory activity and the 7th month of slower job creation.
Last week’s initial jobless of 227,000 was steady at a 5-month high, but historically this is very low as hiring remains good, yet is clearly slowing as the tax cut effect of 2018 has slowed.
October’s U.S. Housing starts rose 3.7% to 1.31 Million, following September’s 7.9% slump. While a nice number compared to 10 years ago, it is below the starts from 1960, 59 years ago, when there were only about half the number of people living in the U.S. Huge student debt and cuts in legal immigration from people seeking jobs with work permits and people seeking asylum, is slowing economic growth.
November’s U.S. Manufacturing index rose, with the steepest factory expansion in 7 months. Output increased at the fastest pace in 10 months and manufacturers had the first backlog increase since June, which together will pressure higher commodity prices. As a negative, manufacturers remain concerned due to future economic uncertainty.
Wall Street’s Dow Jones Average fell to 27,876, but remains high as slow growth is supporting markets as recession fears fade.
If you are looking to dramatically increase your roll off trailer payloads and you do not have to over permit to 107,000 GVW, there is no need to use our BENLEE tri-axle Conventional trailer. Our BridgeMaster tandem axle is a full 80,000 GVW, but weighs about 6,000 less, so it carries about 20% more weight. The BridgeMaster is the New Standard in Roll off trailers.
As always, feel free to call, email me or leave a message on LinkedIn with any questions or comments and we hope all have a Safe and Profitable week.