July 6, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Lugger Truck, July 6th, 2021.
U.S. Weekly crude steel production fell to 1.835MT, an 82.7% steel mill utilization rate vs. 90% in mid-2008. Steel mills continue low production despite surging demand.
WTI Crude oil price rose to $75.16/b, a 3+ year high as OPEC and OPEC+ are meeting this week about increasing production.
The U.S. Weekly Oil rig count rose to 376, still down 76.8% from 2014’s high. U.S. rigs are only slowing rising, with higher prices.
U.S. weekly crude oil production was steady at 11.1M/b/d, still down 15.3% from the pre COVID high. It is not clear how much of the current lower U.S. production is due to the historic U.S. government 2020 deal with OPEC, to lower U.S. production to raise prices.
Scrap steel #1 HMS export buying price Philly, fell to $405/GT, near the 10 year high, as supply caught up with demand.
Scrap steel #1 HMS price was steady at $461.67/GT. Upward price pressure for July is cooling.
Hot Roll Coil Steel Price rose to $87.74/cwt, a record high and is forecast to go higher on surging demand and tight supply due to limited production.
Copper price was steady at $4.28/lb. still about 10% off May’s high, on slowing demand in China, which is 50% of global demand.
Aluminum price rose to rose to $1.14/lb., $2,521/mt, the highest since August 2011, on tight supply and robust demand in Automotive and construction.
China’s June Caixin manufacturing PMI fell to 51.8, the lowest in three months, as new orders eased, exports were flat, but backlogs rose.
Canada’s June IHS manufacturing PMI fell to 56.5, but was the 12th month of expansion on stronger demand, while raw material shortages continue.
U.S. June new jobs added 850,000, the highest in 10 months, as leisure, hospitality and education added the most jobs.
The U.S. unemployment rate rose to 5.9%, which is good news and bad news. Good news is there is great upside and lower wage inflation. Bad news is, millions are still unemployed.
U.S. initial weekly jobless claims fell to 364,000, a new pre pandemic low on less COVID restrictions, fast vaccinations and gov’t support.
U.S. June IHS Manufacturing PMI was steady at 62.1 from May’s record high on improvements in operating conditions. Also, on ongoing supply disruption as labor shortage continue.
Wall Street’s Dow Jones industrial average rose 362 points to 34,786, near a record high. This was on solid job growth and an unexpected increase in the unemployment rate. Higher unemployment keeps interest rates by the Fed, lower.
Tarp systems for Dumps and roll off trucks and roll off trailers are for sale at BENLEE. Pioneer, Roll Rite and more. Tarps, arms, motors, cylinders and more. Buy online at www.benlee.com or call BENLEE at 734-722-8100.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.