August 23, 2021
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Gondola trailer, August 23rd, 2021.
U.S. Weekly crude steel production fell to 1.869MT, an 84.7% utilization rate, vs. 91%+ in 2008, despite some mills now running at 100%+.
WTI Crude oil price fell to $62.32/b. near a 3-month low on demand concerns due to COVID and overall weak global demand.
The U.S. Weekly Oil rig count rose to 405, still down big, vs. pre COVID and 2014. Rigs are trending up slowly as prices slowly trend higher.
U.S. weekly crude oil production rose to 11.4Mb/d, down 13% pre COVID. It’s slowly trending up, after COVID’s collapse.
Scrap steel #1 HMS price was steady at $438.33/GT with limited downward pressure for September despite good supply.
Hot Roll Coil Steel Price rose to $96.83/cwt, hitting a record during the week. Constrained supply and good demand remain.
Copper price fell to $4.14/lb., hitting a multi month low during the week. This was on a strong U.S. dollar and demand concerns with COVID’s resurgence.
Aluminum price fell to $1.164/lb., $2,565/mt. This was on a strong U.S. dollar, but higher demand with climate change investments and on a tight supply.
China’s July industrial production growth fell to 6.4% vs. last year on COVID’s resurgence, higher prices and supply bottlenecks.
The U.S. Dollar Index rose to 93.5, near the highest since November 2020. The U.S. Federal Reserve hinted at less stimulus and on lower jobless claims. When the U.S. dollar index rises, commodity prices fall.
Chicago August Lumber Futures fell to $473/thousand board ft., the lowest since July 2020 on good supply and lower demand. It was actually higher in 2018.
U.S. July industrial production rose .9% vs. June. Motor vehicles were up 11.2% while utilities were down 2.1%.
U.S. July housing starts fell to 1.543M annualized, the lowest in 3 months. This was as higher costs and higher prices hurt the market.
U.S. weekly unemployment claims fell to 348,000, the lowest since COVID. This 55-year-old chart shows how bad it was last year.
Wall Street’s Dow Jones Industrial average fell 395 points to 35,120, as the U.S. Federal Reserve hinted, they will reduce some stimulus this year.
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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.