March 2, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Load Lugger, Lugger Trucks, March 2nd, 2020.
Coronavirus, COVID-19 Update. The virus will get worse, before getting better. Now in 60 Countries and 8 U.S. States. The White House moved from calling the Virus a Hoax, to announcing the first U.S. death, a 180-degree reversal all within 24 hours. Global supply chains are in trouble, with Automotive about to be hit hard. If over 65 years of Age and or have a chronic medical condition, take precautions. Everyone should wash hands, stay home if sick and wear N95 Masks in crowds if gets worse. Note see www.cdc.gov, for the Centers for disease control updates.
U.S. weekly steel production fell slightly to 1.901 MT on the slowing U.S. and Global Economy.
Oil fell to $44.75 a barrel, as OPEC is considering massive additional cuts, without Russia’s help. Low prices are helping U.S. consumers, but hurting U.S. drillers.
U.S. weekly oil production was steady 13 million barrels per day, maintaining the all-time record. Lower prices could reduce incentives and output.
Iron ore fell to $84.50/Ton, as China’s manufacturing struggles to restart after the massive shut down due to COVID-19.
Scrap steel #1 HMS price was steady at $232.67/GT, with upward prices pressure of $10-$20/GT, BUT will recent COVID-19 effects lower this.
Hot roll coil steel slightly rose to $29.37/Hundred, on the slow growth economy and steady scrap prices.
Copper fell to 2.55 per pound on slowing global demand and China struggling to get manufacturing back online. Copper is up this morning to $2.57.
Aluminum fell to 75.3 cents per pound, on the same issues as copper as the global economy is struggling.
China’s February Manufacturing PMI Index plunged to a record low of 35.7 due to Covid-19, much worse than the 2009 plunge. New orders, employment and business sentiment deteriorated sharply. Global supply Chains are being disrupted.
January’s U.S. Manufacturing Durable Goods orders dropped .2%. Transportation equipment and defense fell, while civilization aircraft rose.
January’s single-family U.S. home sales jumped 7.9% to 764,000, the highest in 12.5 years, which is terrific economic news, for jobs and consumer spending.
January’s U.S. Personal income grew at .6%, the highest in a year. As a positive this was partly due to wage increases. As a negative, it was also due to government deficit spending on increased social security and other government social programs.
Wall Street’s Dow Jones Average crashed falling 3,583 points to 25,409, the largest weekly drop since the crash of 2008. While stocks are on sale, but the direction is not clear.
U.S. 30-year home mortgage rates are near a 70-year low, at 3.23% which is an 8-year low. Refinance your mortgage and save money. They could go lower, but are very low now.
Remember, the Institute of Scrap Recycling Industries, ISRI has their annual convention coming up in Las Vegas next month. Register to go today. See the best in software and equipment to make your operations safer and to help you grow more profitably.
As always, feel free to call, or email me with any questions and we hope all have a Safe and Profitable week.