Steel Production Surges; Capacity Utilization Hits 82.3%
U.S. weekly raw steel production rose sharply to 1.90 million tons — up 5.1% from last week and up 5.5% year to date on capacity utilization of 82.3%. The 50% steel tariff protection and strong AI data center construction demand are the primary drivers of that production jump. Hot-rolled coil steel rose to $65.00/cwt ($1,300/ton) on tariff protection, good demand, and tight supply. Scrap steel #1 HMS held steady at $348.33/gross ton on tariff protection and steady demand.
Diesel Hits a Record $6.51 Per Gallon
WTI crude oil eased slightly to $99.53/barrel — still just below the $100 threshold — as the Strait of Hormuz remains partly closed and global demand stays strong. But the bigger fuel story this week is at the pump: diesel hit a record $6.51/gallon today and gasoline reached $4.48/gallon. For truckers, recyclers, scrap haulers, and anyone running roll-off equipment, diesel at $6.51 is a direct and severe hit to operating costs. This is not an abstraction — it is the single largest near-term cost pressure facing our industry right now.
U.S. crude production fell slightly to 13,944 thousand barrels per day but remains near its all-time record. The weekly rig count rose to 452 as producers continue responding to high prices and strong per-well productivity.
Copper Near Record High; Aluminum Tightening
Copper rose to $6.72/lb. — approaching its all-time record. Strong demand from China, AI data center construction, and the global renewable energy buildout are the structural drivers. Supply disruptions at mines around the world and the postponement of U.S. copper tariffs — which had been driving domestic inventory stockpiling — are adding further support. The long-term demand story for copper has rarely been stronger.
Aluminum rose to $1.50/lb. ($3,296/MT) on tight supplies and low global inventories. Increased Chinese exports are helping on the supply side but have not been sufficient to fully relieve inventory tightness.
Fed Raises Rates; Economy Absorbing the Pressure
The Federal Reserve raised the federal funds rate by 0.25% to a target range of 3.75% to 4.0%. The Fed Chairman stated that inflation remains elevated and that higher interest rates are the necessary tool to slow economic growth and bring prices back toward the 2% target. For borrowers — homebuyers, businesses, and consumers carrying variable-rate debt — this increase adds another layer of cost on top of rates that are already at multi-year highs. The cumulative effect of repeated rate increases is now being felt broadly across the economy.
China Industrial Production Accelerates
China’s August industrial production rose 5.2% versus last year. The primary driver: manufacturing of AI data center computers and electrical equipment destined for the United States. This is a notable data point — American AI infrastructure investment is generating significant industrial activity in China, even as U.S. trade policy aims to reduce economic interdependence. The pace of AI-driven demand is outrunning the pace of supply chain restructuring.
Housing Continues to Slow
U.S. August housing starts fell 2.6% to an annualized rate of 1.275 million as the 30-year mortgage rate climbed to 7.2% and home prices remained elevated. The Fed’s latest rate increase will push mortgage rates higher still. Housing is one of the clearest and most direct casualties of the current rate environment and shows no near-term signs of recovery.
Retail Sales Surge; Consumers Still Spending
U.S. August retail sales rose a strong 6% versus last year and 1.2% versus July — the largest monthly gain in five months. Gasoline stations led the increase at 3.1% as fuel prices surged. Non-store retail rose 2.6%. Building materials and garden equipment fell. The headline number is encouraging but important context is needed: a significant portion of the dollar increase reflects higher prices rather than more transactions. Americans are spending more dollars at gas stations because fuel costs more — not necessarily because they are buying more fuel. That distinction matters for understanding the health of the consumer.
Jobless Claims Near a 60-Year Low
U.S. weekly initial jobless claims fell to 196,000 — the second lowest reading in sixty years. Economic growth and labor shortages — partly driven by record immigrant arrests and shifts in immigration policy — are together keeping the labor market historically tight. A claims number this low is a genuine signal of labor market strength, even as other economic indicators flash caution.
Markets Fall on Rates and Energy Costs; Record Family Income Reported
The Dow Jones Industrial Average fell 733 points to 51,683 as higher interest rates, record energy costs, and Middle East uncertainty weighed on sentiment. Buried in this week’s data — and deserving more attention than it received — was a significant positive: newly released 2025 data showed U.S. families recorded their highest median income ever and the lowest poverty rate on record. That is a meaningful milestone for American households even amid the current pressures.
Product of the Week: BENLEE Super Mini Long 33′ Tandem Axle Roll-off Trailer
This week’s featured product is the BENLEE Super Mini Long — a 33-foot tandem axle roll-off trailer built for operators who need a short, maneuverable, heavy-hauling platform. Available in both tandem and triaxle configurations. A 34-foot triaxle version is also available at 80,000 GVW for those needing maximum payload in a still-compact footprint. High uptime, low owning and operating costs, and the build quality BENLEE is known for. Request a quote at benlee.com.
This report is brought to you by BENLEE — manufacturer of roll-off trailers, roll-off trucks, gondola trailers, lugger trucks, and roll-off and dump truck parts. Greg Brown reporting. As always, feel free to call or email with any questions. Wishing everyone a safe and profitable week.
