Commodities, Scrap Metal, Recycling and Economic Report
July 17, 2023
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This is the Commodities, Scrap Metal, Recycling and Economic Report, brought to you by BENLEE roll trailers, gondola trailers and roll off truck parts, July 17th, 2023.
U.S. weekly raw steel production fell to 1.711MT, a 75.2% utilization rate, vs. 78.1% last year. This was on slowing U.S. demand caused by higher interest rates that raises the cost of doing business.
WTI crude oil price rose to $75.19/b. on a higher oil growth target for 2023. Also, this was on supply disruptions in Libya and Nigeria. Moreover, China is moving fast to electric cars. They could use cheap coal for power, which would cut oil demand and oil imports.
The U.S. weekly oil rig count fell to 537 the lowest in 15 months. This was on higher productivity per rig and on keeping supplies tight. Tight supplies brings higher prices and higher oil company profits.
U.S. weekly crude oil production fell to 12.3Mb/d remaining in a tight range for 14 months. This is as OPEC+ and the U.S. oil companies are working to keep supplies tight.
Scrap Steel #1 HMS price was steady at $310/GT, with some downward price pressure. Overall supply and demand remain in some balance.
Hot-rolled coil steel price rose slightly to $43.92/cwt., $878/T on slow demand matched with reduced production.
Copper price jumped to $3.92/lb., on the weak U.S. dollar, shortage concerns and hopes of higher demand.
Aluminum price rose to $1.03/lb., $2,272/mt on increased supply and hopes of increased demand. In some areas of the U.S., it is tough to find buyers of scrap aluminum.
China’s June exports shrank a big 12.4% vs last June amid a slowing of global demand for Chinese goods. Aluminum exports fell 18.9% while rare earths rose 17%.
U.S. June producer price index, which is the price wholesalers and producers charge. They rose just .1% over last year, so almost zero inflation. Prices for gasoline and food rose as scrap steel fell almost 11%.
U.S. June consumer inflation expectations fell to 3.8%, the lowest since April 2021. Expectations for the three year horizon remain at 3%.
U.S. June Annual Inflation fell to 3% the lowest in almost 2.5 years. Energy fell 16.1%, used cars fell 5.7% and food inflation slowed to 5.7%.
U.S. July U of M consumer sentiment index jumped to 72.6 the highest in almost 2 years. Sentiment about both current and future expectations improved.
Wall Street’s Dow Jones industrial average rose 784 points to 34,509. This was on good corporate earnings and more believe we will miss a major recession.
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As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.
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