August 24, 2020
This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailer and Open Top Trailer, August 24th, 2020.
U.S. weekly steel production rose to 1.377M GT on the continued slow growth economy.
Oil price rose to $42.34 as global economic growth continues, and as OPEC and the U.S. continue production cuts.
The U.S. Oil rig count rose to 183, still down a huge 88.6% from 2014. Low prices and the U.S./OPEC deal remains in place to cut production. This is a major loss of great jobs and the loss of steel use.
U.S. weekly oil production was steady at 10.7M/b/d near a multiyear low on the same low prices and the U.S./OPEC production cut deal.
Iron Ore Price rose to $125.50/T a high since 2014 on huge Chinese demand for China’s major infrastructure spending.
Scrap #1 HMS Export Buying price Philly, was steady at $220/GT, a multi month high on a good balance of supply and demand.
Scrap steel #1 HMS price was steady at $211.67/GT with a slow and steady U.S. and global increase in demand.
Hot Roll Coil steel fell slightly to $23.57 per hundred weight, on a slow demand increase. There is upward price pressure due to scrap price increases.
Copper rose to $2.93/lb. and hit $3.03/lb. during the week, a multi-year high on strong demand in China and slow growth in the rest of the world.
Aluminum fell slightly to .78 cents per pound on slow steady demand increases and major Chinese production.
The Eurozone, an economy about the size of the U.S. had their HIS Manufacturing index for August fall to 51.7, meaning slower expansion. Manufacturing growth quickened, new orders rose and backlogs stabilized.
U.S. Weekly Initial Unemployment claims rose to 1.1M on a resurgence of COVID 19 deaths. The 4-week average declined though, which is good news. Claims were about 250,000 for years, pre COVID.
The U.S. IHS Manufacturing index for August rose to 53.6, the strongest increase since January 2019. There was a faster increase in output and new orders. Also, business confidence rose on hopes of economies reopening.
U.S. existing home sales for July jumped 24.7% to 5.86M annualized, the highest in 14 years, with recovering from the slump and low interest rates. Also, work from home has caused a trend for moving to larger homes.
U.S. Housing Starts for July jumped 22.6% to 1.496M annualized, the best since February, with recovering from the slump and low interest rates. This is a great number, but it is at the level of 1960, 60 years ago.
Wall Street’s Dow Jones Average fell one point to 27,930 as added Federal stimulus remains in flux, but concerns remain over increased COVID deaths.
Lugger Trucks as in the original Load Lugger ™, are for sale at BENLEE. Used Lugger trucks are for sale and you can rent a lugger truck at Premier Truck Sales and Rental.
As always, feel free to call, or email me with any questions and we hope all have a safe and profitable week.