U.S. raw steel production dipped slightly this past week to 1.791 million tons, down 1.1% from the prior week — but remains up a healthy 5% year to date. The combination of modest economic growth and 50% steel tariff protection continues to support domestic output.
Oil Markets Rattling the Economy
Crude oil prices pulled back from last week’s spike to $98.71/barrel, but the damage is already showing up at the pump. The national average gasoline price hit approximately $3.70/gallon — a 24% surge in just two weeks. The root cause: ongoing restrictions in the Strait of Hormuz, the chokepoint through which 20% of global oil supply flows. U.S. crude production edged down slightly to 13.678 million barrels per day, though the higher price environment should incentivize increased output. The active rig count rose to 413, and that number should climb further — though drillers are being squeezed by dramatically higher costs for steel pipe and valves driven by U.S. tariff policy.
Scrap & Steel
Scrap steel #1 HMS composite pricing held steady at $388.33/gross ton on a balanced supply and demand picture. Hot-rolled coil steel climbed to $53.00/cwt ($1,060/ton), reflecting strong pricing discipline by steel mills. That’s good for mill margins — but it’s inflationary for cars, trucks, and appliances.
Non-Ferrous Metals
Copper slipped to $5.67/lb as elevated oil prices weigh on the global economy and slow the pace of interest rate reductions. Aluminum edged down slightly to $1.55/lb ($3,420/MT) but remains elevated — a reminder that 9% of global aluminum output transits the Strait of Hormuz.
Economic Signals Flashing Caution
U.S. Q4 GDP growth was revised down to just 0.7%, well below the earlier advance estimate of 1.4%, with downward revisions to exports, consumer spending, government outlays, and investment. The January core PCE inflation index came in at 3.1%, as tariff pass-through continued. February durable goods orders were flat versus January (vs. a forecast of +1.2%), with metals orders higher but capital equipment and transportation equipment lower. The University of Michigan consumer sentiment index fell to 55.5, its lowest in three months, as higher gas prices and personal financial worries weighed on households.
One positive note: the January goods trade deficit improved to -$80.8 billion, as exports rose 8.2% led by industrial supplies and capital goods.
Wall Street Under Pressure
The Dow Jones Industrial Average dropped 943 points to close at 46,559 — the result of the largest wave of attacks on Iran, surging oil prices, and investor concern that February’s elevated inflation could push the Fed to hold rates higher for longer.
This report is produced weekly by BENLEE Roll off trailers and Roll-off parts to support our customers, suppliers, and partners in the recycling, scrap metal, and waste management industries. Questions? Call or email us directly. Have a safe and profitable week.
