May 11, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and Open Top Scrap Gondola Trailers, May 11th, 2020.
Covid-19 U.S. Deaths are now forecasted to be 137,184 through Aug 4th, double last week’s forecast, with the increase due to opening of travel. There are now 79,528 dead in 10 weeks, more than the entire population on Canton, Ohio. About 2,000 people died of COVID in the U.S. yesterday, which is about 10 Jet planes crashing in one day. Other bad news, the game changer Hydroxychloroquine failed another study as a therapeutic, but GREAT news is Remdesivir is now being distributed and human trials have started for a Vaccine.
U.S. weekly steel production fell to 1.144M Tons, about a 10 year low as many automotive plants are to open May 18th.
Oil price rose to $24.74/b, on demand increases and production cuts.
The U.S. Oil rig count fell to 292, near a 10-year low, now down 82% from the 2014 high.
U.S. weekly oil production fell to 11.9M/b/d, down 1.2M/b/d in just 7 weeks, on sharp demand and price declines as well as the U.S. deal with OPEC to cut U.S. production.
Iron ore was steady at $83.50/ton as the Global Economy restarts.
Scrap Steel No. 1 HMS export buying price Philadelphia, was steady to $185/GT on just OK demand, and increasing supply.
Scrap steel #1 HMS price rose about $30 to about $216/GT, on very low demand, but even lower supply that drove up prices.
Steel shredded autobody scrap rose to $265/GT on the same low demand, but low supply.
Hot Roll Coil steel rose to $24.19/Hundred on higher scrap prices and higher demand.
Copper rose to $2.42/lb., the highest in weeks as China and the rest of the world is reopening. Higher copper prices are a very positive economic indicator.
Aluminum fell to 65.3 cents per pound, on limited supply and demand.
Cardboard scrap, OCC SE rose $40 to $125/ton an 18-month high, on increased demand and limited supply.
March’s U.S. Trade deficit widened, meaning is was worse, as exports of travel services, crude oil and vehicles fell, while imports of travel, cell phones, auto parts fell, but fell, less.
April’s U.S. Unemployment skyrocketed to 14.7% the worst since the 1930’s. It is forecasted to go to 20%+ in the coming months. It is not clear if there will be a sharp V shape recovery, as in fast rebound after a fast drop, or will the recovery be slow and painful.
Initial U.S. Weekly Unemployment Claims fell to 3.169M, so 36.7M jobs have been lost in 8 weeks, the worst in U.S. history.
May’s U.S. Consumer Confidence rose to 49.7, which remains low due to job losses, but the outlook for personal finances was up. The U.S. Government pumping $2.8T of borrowed money into the economy, is helping people feel better.
Wall Street’s Dow Jones Average rose 598 points to 24,331 as the economy begins to reopen and the $2.8T of Government stimulus is starting to kick in. Many sectors of the Global economy will have problems, until there is a Vaccine.
As always, feel free to call, or email me with any questions. Importantly, we hope you, your family, friends and employees stay safe.