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Global Economic, Commodities, Scrap Metal, and Recycling Report

February 10, 2020

This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and pup roll off Trailers, February 10th, 2020.

Coronavirus

To begin, the Coronavirus that started in China is spreading. It will probably have a major material effect on the global economy, especially with China being key to global manufacturing. Yesterday China committed to spend $10 Billion to stop the spread.

weekly tonnage of raw steel production

U.S. weekly steel production fell to 1.914 Million tons on continued economic slowing.

Crude Oil

Oil fell to $50.38 a barrel, as global demand slows due to the Coronavirus. OPEC and Russia are considering more production cuts to keep prices up.

US Field Production of Crude Oil

U.S. weekly oil production fell to 12.9 million barrels per day, near the all-time record. Lower prices are hurting oil company profits and could slow production.

Iron Ore

Iron ore fell hard to $83.00/Ton, near a one year low, on coronavirus fears.

AMM Weekly Heavy Melt

Scrap steel #1 HMS price fell about $30/GT to about $230/GT on strong supply vs. demand. We will have more exacting numbers next week.

Hot Roll Coil Steel

Hot roll coil steel fell to $29.64/Hundred, on slow demand. Prices could fall further as scrap prices fall.

Copper

Copper rose to $2.55 per pound after hitting multi year lows during the week. Coronavirus remains the key driver, due to China consumes about 50% of the world’s copper.

Aluminum

Aluminum fell to 76.8 cents per pound, a multiyear low on the same Coronavirus concerns.

Global PMI

JP Morgan’s January Global PMI, Purchasing Manager’s Index, which is an economic indicator, rose to 52.20, a 10-month high, showing faster growth with output rising, BUT this data was pre-Coronavirus concerns.

U.S. Jobs Report

January’s U.S. Jobs Report, which is New Jobs, rose 225,000, which is a good report. We have now had 9.3 Years straight of increases. 9.3 Years!

Labor Force Participation Rate

January’s U.S. Labor force participation rate which is all people over 16 years of age that can work and are working, rose to 63.4, a slow 4.5-year increase. Great that this is going up. This means only 63.4% of people that could work are working. We need this to be higher.

U.S. Unemployment Rate

January’s U.S. unemployment rate rose to 3.6%, But this is good news, due to more people are looking for work, vs. sitting at home on their sofas, not working.

Coal Mining Jobs

January’s Coal mining jobs fell to 51,100, now up 100, yes just 100 in 3 years. Note the commitment was high wage coal jobs would be roaring back. 1985 high was 177,500 jobs.

Dow Jones

Wall Street’s Dow Jones Average rose 846 points to 29,102, hitting a new record during the week, but fell on Friday due to the negative effect of the Coronavirus on the global economy.

Supermini

Want to save over $100,000, literally, and carry about 50% more weight. Buy a BENLEE Super Mini Trailer. When put behind a day cab, it is as short as a roll off truck that costs $180,000 to $210,000. A Super Mini is $48,975 plus FET. In most states it carries about 50% more weight than a roll off truck and when not using it for the morning, the $130,000 day cab can be hauling a van trailer, dump trailer and more. Super Mini, a true roll off truck replacement.

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.