March 1, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Gondola Trailer, March 1st, 2021.
U.S. Weekly crude steel production rose to 1.745MT on the continued slow growth economy. High imports of many products are hurting U.S. Manufacturing.
WTI Crude oil price rose to $61.50/b, the pre COVID level on tightening global supplies due to growth, global production cuts and the huge drop in U.S. production due to the cold blast.
The U.S. weekly Oil rig count rose to 309, down 80.8% from 2014’s high on slow U.S. and global economic growth, as well as higher oil prices.
U.S. weekly crude oil production fell to 9.7Mb/d a 3 plus year low as the Texas freeze caused major economic damage and death.
Scrap Steel #1 HMS export buying price Philly, rose to $320/GT on good demand. Also, supply was somewhat hurt by bad weather.
Scrap steel #1 HMS was steady at $360/GT. Markets expect higher March prices.
Hot roll coil steel rose to $61.72/cwt and hit a record during the week, caused by severely constricted supply and good demand. Mill performance problems continue and bad weather hurt supply.
Copper price rose to $4.10/lb., but off the 10 year high of $4.35 during the week, on continued optimism about growth, but rising interest rates are concerning markets.
Aluminum price rose to 98.4 cents, near a 3 year high on the same dynamics as copper.
China’s January Caxin manufacturing PMI index fell to 50.9 a 9-month low. Exports shrank for a 2nd month and prices rose due to raw material increases, but expectations jumped to the 2nd highest since August 2014.
U.S. February consumer sentiment was revised higher, but still fell to 76.8 the lowest in 6 months as households below $75,000 income were less optimistic, but future expectations were revised higher. Also, inflation was expected at a high 3.3%.
The U.S. 4th quarter 2020 GDP expanded at 4.1%, so total 2020 fell at 3.5%, the worst since 1946. 2021 Could be the highest in decades.
U.S. January personal income surged 10%, the largest gain since April, on increased government stimulus payments.
U.S. January new orders for durable goods rose 3.4% vs. December, the 9th consecutive monthly gain, driven by a 7.8% rise in transportation equipment.
Wall Street’s Dow Jones Industrial average fell 562 points to 30,932 as higher interest rates concern markets, but the federal reserve claims inflation & interest rates will not be a problem for years.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.