August 19, 2019
This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Gondola Trailers, August 19th 2019.
U.S. steel production fell to 1.867 Million tons, on U.S. continued slow growth, mainly due to strong consumer spending, combined with weak manufacturing.
Oil rose to $54.93/barrel, on continued very slow global growth and OPEC reducing shipments to the U.S. to get our inventories down. U.S. inventory levels, are a key to Global oil prices.
U.S. oil production was no change at 12.3M barrels per day matching the all-time record, on great shale oil production, but relatively low prices are creating financial problems for drillers.
Iron ore fell to $92/Ton, on continued Global manufacturing slowing.
Scrap steel #1 HMS rose to $248.33, as slow global growth continues.
Hot roll coil steel fell to $29.30 on slow demand growth and weak iron ore prices.
Copper was no change at $2.59, near the multi-year low on slowing global manufacturing.
Aluminum rose slightly to 79.5 cents, remaining very low, due to global economic slowing while scrap prices remain depressed on slow Chinese demand and excess Automotive scrap.
China’s July industrial production increased by 4.8%, good, but the weakest in 17.5 years. Manufacturing and mining fell, especially textiles, steel making and chemicals. Transportation equipment rose. Note China’s total Economic Growth is about 6.2% vs. the U.S.’s approximate 2.5%.
June’s Eurozone, a market about the size of the U.S. had industrial production fall the most in 6 months, 2.6% behind last year, with slow German exports to China being one of the key problems.
All 5 U.S. recessions in the past 40 years have been led by an inverted yield curve; when the U.S. 10Yr government bond is paying less interest than the 2Yr Bond. This briefly happened last Wednesday.
July’s U.S. Core inflation, which excludes food and energy rose to 2.2%. In total, inflation was 1.8%.
August’s Consumer Sentiment fell to the lowest level since January, based on heightened consumer uncertainty about future financial prospects, with concerns over government excess spending, the tariff war causing price increases and recession fears.
July’s small Business Optimism index rose on expectations of better business conditions and higher retail sales. Plans to create new jobs and make capital outlays improved. A good report!
July’s U.S. Retail sales rose a solid .7% and an even higher 1% when excluding volatile items like vehicles, gasoline, building supplies and food services. Gasoline and clothing rose nicely, as did online sales, helped by Amazon’s Prime day, but auto purchases dropped a big .6%. Overall a solid number.
Wall Street’s Dow Jones Average fell 207 points to 26,278, now up just 1% in past 12 months, on the escalating China trade war hurting global growth and U.S. Recession fears.
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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.