March 9, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Load Lugger, Lugger Trucks, March 9th, 2020.
COVID-19 Update. As of this morning, it is now in about 33 States, about 566 people infected and about 22 deaths. Also, per the CDC recommendation, all persons over 60 years of age, and people with a medical conditions are urged to stay home as much as possible. Important, wash your hands, limit touching your face stay away from sick people.
U.S. weekly steel production rose slightly to 1.923 MT with slow U.S. and slowing global growth.
Oil fell to $32/barrel, a multiyear low on slowing demand and as OPEC and Russia were unable to get an agreement on production cuts. Saudi Arabia dropping prices to hurt Russia, but low prices will also hurt U.S. drillers.
U.S. weekly oil production hit 13.1 M/b/d, a new all-time record, with is nothing other than great news, but with low prices this could now fall.
Iron ore rose to $90/Ton, as China’s manufacturing is coming back on line.
Scrap steel #1 HMS price was steady at $232.67/GT, on slowing demand as COVID-19 is spreading globally.
Copper was steady at 2.55 per pound, near the multiyear low on continued global slowing with some small increased Chinese demand, but dropped to a new multi-year low this morning to $2.49.
Aluminum rose to 76.4 cents per pound, also near multi year lows on the same issues as copper.
Cardboard scrap OCC SE, rose to $50/Ton, but remains low, as limited supply was causing a slight increase.
February’s U.S. Combined Manufacturing and Services, Index, was 49.6, which means true economic contraction, not just slow growth, with the first decrease in overall output over 6 years, and new order expansion was the slowest in at least 11 years. Employment rose, yet backlogs fell, but there was a 9-month high in optimism. Note this was Pre-COVID-19.
February’s U.S. New jobs created were a solid 273,000, with education & healthcare jobs led the way, while retail fell.
U.S. unemployment rate fell to 3.5%, near the 50 year low as the labor force participation rate remained at 63.4%.
Wall Street’s Dow Jones was up 456 points to 25,865 on historic up and down daily moves as COVID-19 and Presidential candidate issues effect markets. It is due to fall hard this morning.
The U.S. 30-year home mortgage rate fell to 3.29% an all-time low. Look to refinance your mortgage this week to save money.
Old News is new news. If you are looking to buy a new roll off truck, save $100,000 and buy a BENLEE Super Mini trailer that is only 25’ 11’ long. When put behind a day cab it is about 12” longer than a roll off truck, but because it pivots, it gets into a tighter spot than a roll off truck. Also, it carries more weight than a roll off truck and only costs $48,975 Plus FET.
As always, feel free to call, or email me with any questions and we hope all have a Safe and Profitable week.