May 10, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Lugger Truck, May 10th, 2021.
U.S. Weekly crude steel production rose to 1.788MT. The steel mill utilization rate was a low 78.7%. Good demand, with low production is keeping prices high.
WTI Crude oil price rose to $64.90/b., with improved global demand, but concerns about India’s COVID cases. India is the world’s third largest oil importer. China is #1 and the U.S. is #2.
The U.S. Weekly Oil rig count rose to 344, down 78.6% from 2014’s high. Many believe the U.S. is oil independent. April’s U.S. average daily oil imports were 5.9M/b/d, with U.S. production of 10.9M/b/d and U.S. exports 2.5M/b/d.
Scrap steel #1 HMS price rose to about $412/GT, with pricing still settling. There remains good demand and good supply in the market.
Hot roll coil steel price fell to $75.15/cwt, falling for the first time in months. Many believe it could go higher before trending down. U.S. steel mills are at or near record profits levels.
Copper price rose to $4.75/lb., a record high and hit $4.90/lb. this morning. Trillions of dollars of stimulus spending is boosting demand. Copper could be the new oil, as demand could outstrip supply.
Aluminum price rose to $1.14/lb., $2,555/MT a multi-year high. Good demand and China production cuts are raising prices.
China’s April Exports surged 32.3% over April 2020 and increased 30.6% from March. Exports to the U.S. surged 31.2%. Note, China’s exports drop each February due to their New Year. Major amounts of U.S. stimulus dollars are flowing right to China as we buy computers, T.V.s, video games and more.
Canada’s unemployment rate, rose to 8.1%, partly caused by 67,000 people restarted looking for work. Overall, it is trending down as the economy reopens.
The U.S. March trade deficit widened to $74.4B a record deficit, caused by decades of horrific government policy. China’s COVID shutdown in Q1, slowed China’s exports to the U.S., but the deficit has been trending worse since 2018 and for decades.
The U.S. April new jobs report, increased by 266,000, well below forecast. Leisure and hospitality gained 331,000 jobs as manufacturing fell.
The U.S. April Labor participation rate, which is people 16 years old or older in the workforce. It rose slightly to 61.7%, but we need to get higher. We must get people off the sofa and back to work.
The U.S. unemployment rate rose to 6.1% as jobs increased, but more people reentered the workforce.
Wall Street’s Dow Jones Industrial Average rose 904 points to 34,778, a record high. The poor jobs report and inflation remain concerns.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.