June 29, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Gondola Open Top Trailer, June 29th, 2020.
Covid-19 Update. Forecasted U.S. deaths remain high at 179,106 through Oct 1st with a staggering 125,803 dead in 16 wks. Bad news is multiple states have paused or are reshutting parts of their economy. Also, multiple states are recording record hospitalizations and an increased positivity rate. As for good news the government is making syringes and vials getting ready for a vaccine.
U.S. weekly steel production rose slightly to 1.24M Tons, as the U.S. is partially reopening, but as some areas are closing again.
Oil price fell to $38.49/b as production cuts remain in place and global demand is increasing.
The U.S. Oil rig count fell to 188, down a huge 88.3% from the high as production cuts stabilize and a huge fracking company Chesapeake, filed for bankruptcy.
U.S. weekly oil production rose to 11.0M/b/d, off the 2 year low, as the U.S. is still meeting the commitment to OPEC and Russia to cut U.S. production.
Iron ore was steady at $104/ton, but remains high as the global economy is slowing opening.
Steel scrap #1 HMS Buying price Philly was steady at $215/GT, with a balance of supply and demand.
Scrap steel #1 HMS composite price was steady at $210/GT as there is downward price pressure for July.
Hot Roll Coil steel rose to $24.00/Hundred on low demand and low supply.
Copper rose to $2.67/lb., near a multi month high. It is $2.69 this morning. Copper price is a key economic indicator, so this is very good news.
Aluminum fell slightly to 71.5 cents per pound, on the same economic rebound.
The Eurozone an economy larger than the U.S., had its manufacturing index rise to 46.9. But, remember under 50 means contraction. COVID restrictions continue to be relaxed as output fell, there were less layoffs, but sentiment was up.
U.S. existing home sales for May fell 9.7% from April and a huge 26.6% from last year, the lowest since October of 2010. The good news is, they will rise in the future.
U.S. GDP Actual and U.S. Forecast shows the economy has been slowing since mid-2018, pre COVID and fell 5% in Q1 2020. Q3 is estimated to fall a horrific 25% or more, but up a great 15% in Q3, with Q4 up 4% or more and 2021 Q1 at 2%+.
U.S. Durable Goods orders for May rose 15.8% from April, as transportation equipment orders surged, but the core number, which is the base number which excludes Planes and military, only rose 2.3%. This is bad news.
Consumer Confidence for June rose to 78.9, but remains low as it is clearly linked to progress against COVID.
Wall Street’s Dow Jones Average fell 855 points to 25,016 as markets are concerned about COVID record levels in many states.
As always, feel free to call, or email me with any questions. We hope all have a safe and profitable week.