U.S. raw steel production fell to 1.83 million tons this week. That is down 1% from last week but still up 6% year to date. Capacity utilization came in at 79.3%. The 50% tariff protection continues to support output. The economy is growing slowly but the tariff floor remains firm.
Oil Back Above $100
WTI crude rose to $101.94/barrel this week. That is up 60% since the war started. Nearly 20% of global oil supply is being blocked by the closed Strait of Hormuz. The national average gasoline price hit $4.45/gallon yesterday. That is up from $3.10/gallon just one year ago — a 43% increase in twelve months. U.S. crude production edged up slightly to 13.585 million barrels per day. Record U.S. crude oil exports and high prices are pushing producers to consider expanding output. The rig count ticked up slightly to 408. Both record exports and significantly higher prices are encouraging more drilling activity.
Scrap Steady, Steel Surges
Scrap steel #1 HMS composite held steady at $368.33/gross ton. Good export demand and solid pricing are keeping the market balanced. Hot-rolled coil steel jumped to $56.60/cwt ($1,132/ton). That is up 30% in the past twelve months. The 50% steel tariff is driving that gain. It is great for steel company profits and stock prices. But it is inflationary for every industry that uses steel — from autos to appliances to construction.
Non-Ferrous Metals Remain Elevated
Copper slipped slightly to $5.96/lb but remains very high. Expanding Chinese manufacturing is supporting demand. However Commerzbank believes current high prices will limit further upside. Aluminum fell slightly to $1.60/lb ($3,518/MT) but remains elevated. The possible prolonged closing of the Strait of Hormuz is a key factor. Surging natural gas prices are also raising the cost of aluminum production significantly. Both pressures are keeping prices high.
The Fed’s Preferred Inflation Gauge Stays Hot
The March core PCE inflation index rose to 3.2%. That is well above the Federal Reserve’s 2% target. Core PCE excludes volatile food and energy. It is the Fed’s preferred inflation measure. Total PCE rose 0.7% for the month alone. That is 8.4% annualized. Gasoline drove the monthly surge. This data makes near-term interest rate cuts very difficult to justify.
Durable Goods and Manufacturing Hold Up
March durable goods orders rose 0.8% from February. Computers and electrical goods led the gain. AI-related demand is driving strong orders in those categories. The April ISM Manufacturing PMI held steady at 52.7. That matches the highest reading since August 2022. New orders and production both expanded. Employment fell. Notably 31% of managers reported positive conditions while 69% were negative. The headline number looks good. The underlying sentiment does not.
GDP Grows But Misses Expectations
U.S. Q2 2026 GDP expanded at 2.0%. That is below the 2.3% expectation. AI data center investment surged. But consumer spending fell. The trade balance hurt the number significantly. Exports rose a strong 12.9%. But imports surged an even larger 21.4%. That gap dragged GDP lower. A widening trade deficit is a direct subtraction from GDP growth.
Jobless Claims at a 57-Year Low
Weekly initial jobless claims fell to 189,000. That is the lowest level since 1969 — 57 years ago. The labor market remains remarkably tight. The economy continues in its low-hire, low-fire pattern. Jobs are stable. Workers are staying put. That is a genuine bright spot in an otherwise complicated economic picture.
Wall Street Inches Higher
The Dow Jones Industrial Average rose 52 points to close at 49,499. The broader S&P 500 hit a new all-time high. U.S. oil companies and technology stocks led the gains. Markets are grinding higher on the strength of energy and AI-driven tech. Volatility remains present but the trend is positive.
This weekly report is produced by BENLEE Roll-off Trailers and Roll off trailer parts store to support our customers, suppliers, and partners. We serve the recycling, scrap metal, and waste management industries. Questions? Call or email us anytime. Have a safe and profitable week.
— Greg Brown, President & CEO, BENLEE Roll-off Trailers
