April 5, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Gondola Trailer, April 5th, 2021.
U.S. Weekly crude steel production rose to 1.76MT, rising slowly as the steel shortage continues bringing record high prices each week.
WTI Crude oil price fell to $61.45/b as OPEC+ reached a deal to increase production. Prices remain under pressure with the slow global vaccine roll out.
U.S. weekly crude oil production rose to 11.1Mb/d, the highest in months on a slow growth in demand.
Scrap Steel #1 HMS export buying price Philly, was steady at $330/GT, on downward pressure with good demand, but heavy supply.
Scrap steel #1 HMS was steady at $411.67/GT, with downward pressure for April on the same heavy supply.
Hot roll coil steel rose to $66.73/cwt, another record high as shortages continue, due to limited supply.
Copper price fell to $4.01/lb., a 6-week low, on the strong U.S. dollar, but demand forecasts remain strong.
Aluminum price fell to $1.01/lb., off the recent 2 year high on a strong dollar and good demand.
China Caxin Manufacturing Index fell to 50.6, meaning the rate of growth slowed, but there was the highest positive sentiment in 7 years.
The U.S. dollar index vs. other global currencies. Note when the index goes up, commodities priced in dollars goes down. The index rose to near a 5-month high, betting on a strong U.S. economy. It could go higher as the U.S. is better positioned for growth vs., other countries.
U.S. March new vehicle sales rose to 17.7M annualized the highest in years on huge stimulus spending and despite higher prices. The shortage of vehicles will limit next quarter’s sales.
U.S. March jobs report, which is new jobs created. They rose to 916,000, the most in 7 months on the fast vaccine rollout, with the largest gains in leisure and hospitality as well as education.
The U.S. March unemployment rate fell to 6%. While a great trend it is probably higher. The number of unemployed fell by 262,000 and the number of employed rose by 609,000 which is great news.
U.S. March total employment rose to 144.1M, the June 2016 level of about 5 years ago, which is a great upside. We are still down 8.4M jobs from the February 2020 peak.
The U.S. March IHS manufacturing index was revised higher to 59.1 the 2nd highest growth on record, with the steepest new orders since June 2014, but the longest lead times on record. Inflation pressures intensified and the expectations were the 2nd highest in 6 years.
Wall Street’s Dow Jones Industrial Average rose 80 points to 33,153 with Monday’s Futures at a record. Investors are betting on a strong recovery and the new bill proposed by the President for $2.2T of spending including $621B for transportation, $580 billion for manufacturing and $400 billion for the elderly and disabled.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.