Loading price data
This is the Scrap Metal, Commodities, Recycling and Economic Report, by BENLEE and Raleigh and Goldsboro Recycling, December 4th, 2017.
Last week commodity prices and economic reports were mixed.
U.S steel production fell slightly, remaining in a tight band in recent months and importantly is well ahead of last year and the year before as demand stays good.
Oil was no change ending at $63.70, near its multiyear high on a slow growth in demand. OPEC’s key annual meeting resulted in an agreement to remain keeping production down, in an attempt to keep prices on an upward trend. The U.S. oil rig count increased by 2, to 749, the highest since September.
Iron ore rose $1.50/MT to $69.00, coming off the recent low of a few weeks ago on good demand, mixed with good supply.
Scrap ferrous prices remained flat, with continued word of increases for December. While most expect an increase, the very good weather has meant flows into scrap yards have been down, but not as down as would be expected, which will temper the probable increase.
Hot dipped galvanized steel fell to $932.50/T after weeks of holding steady. This was a rare move in a good market.
Copper fell a big 10 cents to $3.095 on little news and a slow growth economy. Copper is up a penny this morning to a bit over $3.10.
The 5 year chart shows we remain off the multiyear high we saw in October as demand remains good, not great.
Copper inventories fell again to a new annual low, putting upward pressure on prices.
Aluminum fell 2.5 cents to 93.2 cents, following copper down on no major news while staying away from the multiyear high it hit a number of weeks ago.
Aluminum inventories continue their multiyear fall and hit new 10 year lows once again, keeping upward pressure on prices.
U.S. ISM Purchasing Managers index for manufacturing fell a bit, but remains near its 13 year high, as employment and export orders eased a bit, yet inventories shank. Most industries continued in a good growth mode such as Paper Products, (yes Amazon cardboard boxes), transportation equipment, electrical products and more. Only wood and petroleum & coal products contracted.
U.S. vehicle sales fell to a rate of 17.48 Million in November, as the effect of new sales after the hurricanes is about complete. With the economy continuing slow growth, 17.48 remains a very solid number.
The U.S. economy expanded at an annualized rate of 3.3 percent in the third quarter, as measured by GDP, Gross Domestic Product. This is great news as we get back to the over 5% we hit in 2014. Economic growth is critical to getting to a stable U.S. Federal Budget.
The U.S. Federal Debt is now over $20 trillion. This is money that the government has spent on Military, Healthcare, paying out social security, Education and more, which has been borrowed and we are paying interest on. It is pretty easy to have a great economy when a key part of it has not been paid for. It is like having fun running up a big Visa bill and not paying it off.
Wall Street’s Dow Jones average rocketed ahead to hit new highs yet again, closing at 24, 232, up 674 points for the week. Great news as the coming tax cuts come closer to a reality. This is great for the economy as people spend more, as the see more money in their 401Ks and savings. The scary part is that in September 2016 more than a year ago, it was said that the stock market was “a big fat ugly bubble”. It is up about 30% since that was said.
Member