August 20, 2015

Romulus, MI. August 20, 2015 – Below is a letter that BENLEE's affliated companies Raleigh Metal Recycling and Goldsboro Metal Recycling sent to its customers this week. Many BENLEE customers are also in the scrap metal business, so we felt it was important to post this letter on BENLEE's site.

To Our Valued Customers:

We felt it was important to let all know that scrap metal prices are now at 6+ year lows, so unless there is a change, your payment next month will be even lower than this. Of course many of you that deal in buying finished goods steel, copper and aluminum are aware of this due to finished goods metal is also at multi year lows.

The reasons for this are:

  1. The U.S. economy is not growing as fast as it could be, but it is doing much better than other global economies. This has caused the U.S. to be great for other countries to invest money in, so the U.S. Dollar (Currency) has become strong vs. other currencies in the past year. Commodities traded in dollars go down when this happens.
  2. The strong dollar means finished goods metal is cheaper from other countries, so it is coming in to the U.S., competing with U.S. steel mills and smelters. This means U.S. metal operations are not doing well.
  3. The strong dollar means U.S. scrap metal is expensive, so China and Turkey are buying more scrap metal from Europe, not the U.S., hurting demand and prices here.
  4. China that consumes about half the world's metal is experiencing a major slow down. The lack of demand has prices down.
  5. Oil drilling is down over 50% from last year in the U.S. Oil rigs use major amounts of steel, so the lack of demand for steel has prices down.

At this time we see nothing in the global economy that will reverse this. We do think there is more downside and then stabilization.

We thank you for the business. If you have any questions, feel free to call me on my cell at 734-722-8100. Also, see the attachments.

Lastly, you may want to go to our Raleigh or Goldsboro websites and click on the Monday Metal Report, which is our weekly report on the industry.

Greg Brown

About BENLEE: BENLEE is a full service manufacturer and seller of Roll off Trailers, Open Top Scrap Gondola Trailers, Pup Trailers, Dump Trailers and Crushed Car Haulers. We stock parts for all makes and models of Roll off Trailers, Roll Off trucks and Dumps. Visit our on line 24/7 Parts store located at or by calling our Parts Hotline at 734-722-8100. Repair, Service and Frame Straightening is also available.

Benlee 30383 Ecorse Rd, Romulus, MI 48174 –

weekly tonnage of raw steel production

amm weekly no. 1 heavy melt-price composite

copper high grade globex

1 year aluminum spot