Commodities, Scrap Metal, Recycling and Economic Report

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This is the Commodities, Scrap Metal, Recycling and Economic Report, brought to you by BENLEE roll-off trailers, gondola trailers and roll-off truck parts, August 7th, 2023.

U.S. weekly raw steel production rose slightly to 1.749MT a 76.9% utilization rate vs 78.1% last year. This was on slowing U.S. manufacturing.

WTI crude oil price rose to $82.82/b, the 6th consecutive weekly rise, as Saudia Arabia and Russia extended production cuts. OPEC & U.S. production limits are bringing higher prices and profits.

The U.S. weekly oil rig count fell to 525, the lowest in 17 months which supports higher prices. This was on higher productivity per well and the need to keep production low. Oil company shareholders need higher stock prices which brings low production, so higher oil prices and profits.

U.S. weekly crude oil production was steady at 12.2Mb/d in a tight range for 15+ months. Crude oil exports from the U.S., yes from the U.S. are near a record. China and Europe are the top customers of U.S. oil. Crude oil and refined oil exports from the U.S. is great for the U.S. economy.

Scrap Steel #1 HMS price rose to about $330/GT but is still settling. There is a close balance between supply and demand.

Hot-rolled coil steel price fell to $39/cwt., $780/T on soft demand as U.S. manufacturing slows.

Copper price fell to $3.85/lb., on slow post COVID Chinese growth. There remain shortage concerns, but long term growth demand is positive.

Aluminum price rose slightly to $1.02/lb., $2,241/mt. on lower Chinese production due to lower rainfall, so less hydro power for aluminum smelters.

U.S. July S&P manufacturing purchasing managers’ index. It rose to 49, but under 50 in contraction, so it is contracting less. This was on a sharp drop in backlogs as new orders dropped. There was also renewed raw material inflation.

U.S. July new jobs report. There were 187,000 new jobs, below the 200K forecast. The Federal Reserve wants slow job growth to reduce wage pressures. Healthcare rose the most as manufacturing, transportation and information services fell.

U.S. July total non-farm payrolls rose to 156.3M, the highest number of people working in American history. Inflation is getting better, too slowly, but the economy is not bad.

The U.S. July unemployment rate fell to 3.5%, near the 50 year low. Slow, but good job growth continues.

U.S. July average hourly earnings were steady at 4.4% vs. last year, which is viewed as inflationary by the Federal Reserve. This could bring higher interest rates, to slow the economy further.

Wall Street’s Dow Jones Industrial Average fell 393 points to 35,066. This was on concerns over the increasing federal debt and on Apple’s lower financial results. But there was the good jobs report and other positive corporate earnings.

Roll off trailer, the Super Mini Long at only 33’ and 77,500 GVW will carry almost 22 tons. It is a great short heavy duty roll off trailer. Call us at 734-722-8100 for a quote.

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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