December 23, 2019
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, December 23rd, 2019. This is a special remote edition.
U.S. steel production rose to 1.844 Million tons. While U.S. manufacturing remains weak, Consumer spending could increase industrial growth.
Oil rose to $60.19 a barrel, near the Multi-month high, on continued OPEC production cuts and hopes of faster global growth.
U.S. weekly oil production remained steady at 12.8M barrels per day, near the record level, which is great for the overall U.S. Economy and jobs.
Iron ore fell to $93Ton, but remains high on the same hopes of faster global growth.
Scrap steel #1 HMS was steady at $229.33. Supply is coming into recycling operations too slowly. This means January could see higher prices to increase flow into Recycling yards.
Hot roll coil steel rose to $28.75/Hundred as steel mills continue to pass on increased scrap and iron ore prices, with more on the way.
Copper rose to $2.82 per pound, on continued positive trade news and ok, but slowing U.S. economic growth.
Aluminum rose to 80.2 cents per pound, on the same positive trade news and OK economic growth news.
November’s China Industrial Production rose 6.2% year on year, the sharpest yearly growth in industrial output since June, with mining and metals strong. Eleven months of 2019 were up 5.6% from 2018.
U.S. GDP for the third quarter was a slow 2.1%. This is OK growth, but is a major problem. The 2017 tax cut was forecasted to increase growth to 4, 5, or 6%+, so the tax cuts were to more than pay for themselves. This simply is not happening. Instead slowing growth is bringing huge deficits and major borrowing. Major borrowing will lead to slower growth and more taxes unless Washington changes plans to drive growth to bring in more taxes and cut spending.
The U.S. Manufacturing Index clearly shows there was a major positive after the Tax cut, but since mid-2018 manufacturing has been contracting. We do think this is near the low of this cycle, while the consumer remains in very good shape.
December’s U.S. consumer confidence rose to 99.3, the highest since May as consumers view current conditions as more positive and inflation expectations declined.
December’s Home Builders index jumped to 76, the highest reading in over 20 years. Great news for future high wage jobs and capital spending.
Wall Street’s Dow Jones Average rose to 28,455 hitting a new record during the week on the positive trade news and good job growth, as slow economic growth continues.
While U.S. Government debt is rising and is close to a dangerous level, there is huge room for Optimism about the global economy per a recent CNBC article. 1. Global prosperity is rising, 2. Some of the world’s worst places are getting better like Uzbekistan and Sudan. 3. The Global middle class has never been larger and half of humanity lives in democracies. 4. Violent crimes have declined. 5. We’re getting smarter and more tolerant. 6. Technology could save the planet, from healthcare advances and carbon scrubbing for climate change.
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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.