December 14, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Gondola Trailer, December 14th, 2020.
U.S. Weekly crude steel production rose to 1.579M tons, near a 9 month high on slow U.S. & Global growth.
Crude oil price rose to $46.60/b, near a 9 month high on delayed U.S. stimulus news, but slow increases in demand continues.
The U.S. weekly Oil rig count fell to 258, down 84% from the 2014 high on relatively low prices and on a very slow increase in demand.
U.S. weekly crude oil production was steady at 11.1M/b/d, on the same relatively low prices and low demand.
Scrap Steel #1 HMS Export buying price Philly rose to $285/GT on strong export demand and moderate supply.
Scrap steel #1 HMS price settled at about $303.20/GT, about a 20-month high, on the same good export demand and moderate supply. Upward price pressure remains in the market.
Hot roll coil steel rose to $45.49/cwt, an almost 2.5 year high on good U.S. and global demand and higher scrap and iron ore prices. Also mill outages are causing supply shortages.
Copper price was steady at $3.53/lb. near a 7 year high as markets are optimistic about future economic growth and on strong Chinese demand.
Aluminum price fell to $.91/lb., but near a multiyear high on similar dynamics to copper.
Eurozone economic growth, GDP. The Eurozone is an economy about the size of the U.S. Their economy grew at 12.5% in the 3rd Q, but it is still down 4.3% vs. last year.
November’s U.S. small business optimism index fell to 101.4, but it is still relatively high. It fell on COVID uncertainties and future policy uncertainties.
November’s U.S. inflation rate was steady at 1.2%, well below the 2% Federal Reserve target. New vehicles were up 1.6%, but energy fell 9.4% and apparel fell 5.2%.
U.S. weekly initial unemployment claims rose to 853K, plus 428K self-employed people, so 1.28M total, the highest in about 12 weeks. Under 300K is needed for growth. New Lockdowns across the U.S. are causing layoffs.
December’s U.S. consumer confidence about the economy jumped to 81.4. Current and future expectations improved.
Now the same U.S. consumer confidence, when looking at details by political party. Democrats are dramically more positive since the election and republicans are dramically more negative.
Wall Street’s Dow Jones Industrial average fell 172 points to 30,046, but near the record high on record daily COVID deaths in the U.S. and the delayed stimulus bill, but outstanding news, the 1st vaccines are going in arms this morning.
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As always, feel free to call, or email me with any questions and we hope all stay safe in these very difficult next 6 months.