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This is the Scrap Metal, Commodities, Recycling and Economic Report, by BENLEE and Raleigh and Goldsboro Recycling, January 22th, 2018.
Last week, commodity prices and economic reports were mixed.
On the left, U.S steel production rose remaining ahead of two years ago and similar to last year. Slow economic growth continues to support steel production.
Oil fell $1/barrel to $63.57 remaining near multiyear highs on solid global demand and continued limits by OPEC countries.
U.S. oil production rose slightly remaining near all-time highs which should continue.
U.S. Fossil fuel production is forecast to hit new records in 2018 and 2019 with natural gas and oil taking the lead, while coal continues to fall after a small increase last year. These steel intensive industries bring upward pressure on steel prices.
Iron ore fell $3.50MT to $75, near a multi month high on good global demand as supply slowly ramps up.
On the left, Scrap ferrous prices rose slightly as markets begin thinking about next month. Flows have picked up in many markets bringing steady to lower prices, but bad weather shut operations in other markets, hurting supplies, meaning prices could be little or no change next month.
Stainless 304 scrap, rose to a multiyear high on continued slow growth and a weak dollar that puts upward pressure on prices.
Copper fell three cents to $3.19 on balancing supply and demand along with a weaker dollar. Copper is up 2 cents this morning to $3.21.
The 5 year chart shows copper remains slightly off the recent 4 year high, on good demand and supply.
Copper inventories rose to a one month high, but remain near multiyear lows.
Aluminum rose a penny to $1.01 remaining near the more than 5 year high, as global manufacturing and construction remains strong.
Aluminum inventories held steady near about 8 year lows as production continues to increase to meet demand.
The U.S. dollar hit a three year low as the prospect of a potential government shut down loomed, which of course happened. Recent U.S. government policies have some countries moving away from the U.S. dollar, which is part of this weakening. The lower dollar puts upward pressure on commodity prices, while helping lower prices for U.S. companies as they sell abroad and raise import prices.
The U.S. Consumer sentiment index fell to a six month low, as consumers evaluate the current economic conditions less favorably amid uncertainties about the delayed impact of tax reforms.
Class 8 truck preliminary December sales, a key economic indicator, jumped to 37,200 a huge 77% ahead of last year and the highest monthly number in more than three years, putting upward pressure on commodity prices.
U.S. Industrial production rose .9 percent in December vs. November, as vehicles and machinery increased. Electrical output, natural gas production and mining all increased as well, while chemical and coal products fell and growth slowed in overall manufacturing.
Wall Street’s Dow Jones jumped 269 points to a record 26,072 as many economic signs remain positive, but the government shut down remains a negative.
Weekly initial jobless claims fell to 220,000 the lowest level since February 1973, a huge 45 years ago, as the job market continues to tighten. Overall a very positive sign for the economy.
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