July 20, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Lugger Truck, July 20th, 2020.
Covid-19 Update. Forecasted U.S. were raised dramatically to a horrific 224,546 through Nov 1st with a catastrophic 140,466 Americans now dead in the last 19 wks. Bad news is COVID deaths are at record levels in some states and refrigerated vans are now being used in some cities to store dead bodies as morgues fill up. As for Good news-a vaccine is being targeted to be ready in about 4 months.
U.S. weekly steel production rose to 1.289M Tons, with very slow growth as the U.S. is struggling to restart.
Oil price rose to $40.59/b, near a multi month high as global demand is better, but production cuts remain in place.
The U.S. Oil rig count fell to 180, down 88.8% from the recent high. The Oil and gas rig count combined is the lowest since 1940, as the OPEC and the U.S. remain coordinating to get prices up.
U.S. weekly oil production was steady at 11.0M/b/d, 2.1M off recent high as the U.S. production cut commitment to OPEC remains and as U.S. drillers are under financial pressure.
Iron ore rose to $110/ton, near a 1 year high, as Chinese steel mill production remains strong.
Scrap #1 HMS Export Buying price Philly, fell to $190/GT on good supply and moderate export demand.
Scrap steel #1 HMS fell to $193.33/GT on good supply and OK demand. There could be downward price pressure in August.
Hot Roll Coil steel fell to $22.90/Hundred on good supply and very slow growth in demand.
Copper fell to $2.90 per pound, near a 15-month high, as Chinese demand is accelerating. This remains a positive indicator, but it is leveling off.
Aluminum fell to 73.32 cents which briefly spiked as demand remains OK.
China’s GDP, their economic growth, in the second quarter grew 3.2%, from Q1 negative growth of 6.8%. China is the first major global economy back in a growth mode. They had a continued fall in retail sales, so their maybe more government support.
July’s U.S. Consumer sentiment fell to 73.2 from June’s 78.1 due to the concern over the widespread resurgence of COVID and its impact on personal financials and the economy.
June’s U.S. inflation rose .6% from May’s 4.5 year low of .1% as food and home prices rose and gasoline and apparel prices fell.
June’s U.S. Housing starts, new homes, rose 17.3% to 1.186M Annualized, which is good, but lower than the 1960’s and remains 4% below last year.
U.S., retail sales for June surged 7.5%, but lower than the record 18.2% in May, as more businesses reopened. Clothing sales surged 105% and appliances rose 37.4%.
U.S. home 30 Year mortgage rates fell to 2.98% the lowest on record. Many of the U.S. based people listening to this should look to refinance your mortgage, which could save money and therefore help the economy, as you spend the savings.
Wall Street’s Dow Jones Average rose 597 points to 26,672 on positive news about covid vaccine development, but investors are very concerned about the dramatic rise in COVID deaths.
As always, feel free to call, or email me with any questions. We hope all have a safe and profitable week.