June 7, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Lugger Truck, June 7th, 2021.
U.S. Weekly crude steel production rose to 1.836Mt, near a one year high. Constrained supply is hurting other parts of the economy.
For a bit of history, here is U.S. steel production going back to the 1960’s. The all time high was May 1973. A more recent high was the summer of 2008. China now makes about the amount of steel in a month, then the U.S. makes in a year.
WTI Crude oil price rose to $69.62/b, the highest in 2.5 years on a strong economic recovery. OPEC said it is premature to increase supply.
The U.S. Weekly Oil rig count was unchanged at 359, down 77.6% from 2014’s high. Higher prices and higher demand are slowly increasing rigs.
Scrap steel #1 HMS price rose to about $465/GT on good supply, but strong demand.
Hot roll coil steel price rose to $82.36/cwt, a new record high on short supply and good demand. Prices could stay high until Q4 or into 2022.
Copper price fell to $4.52/lb. but is still high as China demand is down and on good supply.
Aluminum price rose to $1.10/lb., which is $2,432/MT, near a multiyear high on low inventories and good demand.
Eurozone May manufacturing PM index was revised higher to 63.1 a new record, on rapid gains in new orders, but bottlenecks were problematic. Output inflation was the fastest in more than 18 years.
Canadian Q1 2021 GDP expanded at 5.6% annualized. It was very fast, but below forecast.
U.S. April factory orders shrank .6% vs. March, the first negative in 12 months, led by slowing transportation equipment orders. The good news is, excluding transportation it was up .5%.
U.S. May new job’s report added 559,000 jobs, which was below forecast. Hospitality and education added the most. COVID concerns and government subsidies are keeping people home.
U.S. May unemployment rate fell to 5.8% the lowest since March 2020, but still well above the 3.5% of February 2020. It is still tough to hire as 9.32M people remain unemployed.
U.S. IBD/TIPP June Consumer Economic Optimism Index, rose to 56.4 the highest since pre COVID as people were positive about the U.S. economy and personal finances.
Wall Street’s Dow Jones Industrial Average rose 227 points to 34,756 on strong growth, but weaker than expected jobs. Less jobs have the feds keeping interest rates lower, longer.
Need to reduce scrap metal transportation costs? Carry about 6,000 lbs. more per load in 20–80-yard boxes. Buy a BENLEE BridgeMaster, 80,000 GVW roll off trailer, vs. a standard trailer. The BridgeMaster is made from robust high strength, optimized steel, which brings a low tare weight.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.