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Global Economic, Commodities, Scrap Metal, and Recycling Report

February 24, 2020

This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Load Lugger, Lugger Trucks, February 24th, 2020.

Coronavirus

The Coronavirus continues to spread, now in 26 countries. Due to the virus, the IMF, international monetary fund, lowered their global forecast .1% to 3.2%, lowering China’s growth .4% to 5.6%. The U.S. Atlanta Fed says the U.S. forecast for Q1 growth will be approximately 1.6%, while total US growth for 2020, is forecasted by most to be 2.0 to 2.2%. Last year the White House had forecasted 4, 5 and 6% or more growth, but as of two weeks ago, they are now saying 3.0%, which we may miss due to the 2.0-2.2% just stated. We must grow faster.

weekly tonnage of raw steel production

U.S. weekly steel production rose to 1.907 MT on a continued slow growth economy.

Crude Oil

Oil rose to $53.43 a barrel, as OPEC production cuts work to keep prices up.

US Field Production of Crude Oil

U.S. weekly oil production was steady 13 million barrels per day, matching the all-time record. Great for U.S. economy.

Iron Ore

Iron ore rose to $93/Ton, on continued slow growth, but could be negatively affected shortly due to the coronavirus.

AMM Weekly Heavy Melt

Scrap steel #1 HMS price was steady at $232.67/GT as there is steady to downward price pressure.

Hot Roll Coil Steel

Hot roll coil steel fell to $28.70/Hundred, on the slow growth economy and steady scrap prices.

Copper

Copper was steady at $2.60 per pound on slow global demand and a weakening China, which consumes about 50% of the world’s copper.

Aluminum

Aluminum rose to 77.3 cents per pound, $1,713.50MT, on the same slow global growth story.

Euro Area Manufacturing

The Euro area, an economy about the size of the U.S., had its February Manufacturing PMI improve to 49.1, but since below 50, that is contraction. In fact, the 13-consecutive month of contraction, but new orders dropped at the slowest rate in 15 months.

U.S. Manufacturing Index

February’s U.S. Manufacturing Purchasing Manager’s index fell to 50.8, the slowest expansion since August, caused by weak demand and Chinese delivery delays due to the Coronavirus.

U.S. Building Permits

January’s U.S. Building permits rose 9.2%, the strongest gain since September 2012 and the highest since March 2007, with Multi-family housing surging 14.6%. Great News for high wage jobs and overall spending.

Dow Jones

Wall Street’s Dow Jones Average fell 406 points to 28,992. Uncertainty around the Coronavirus has Wall Street concerned about U.S. and global growth.

Lugger

Are your Lugger trucks getting to be 20 plus years old. BENLEE is now manufacturing’s the leading Load Lugger brand, which was Huge Haul and before that Heil. Call us for a quote. You can also rent one for the week, month or year from Premier Truck Sales & Rental and even buy great used lugger trucks from Premier.

As always, feel free to call, or email me with any questions and we hope all have a Safe and Profitable week.