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Scrap Metal & Commodities Recycling Report - BENLEE Roll Off Trailers January 29, 2018

This is the Scrap Metal, Commodities, Recycling and Economic Report, by BENLEE and Raleigh and Goldsboro Recycling, January 29th, 2018. This is a special remote edition as we attend the quarterly Recycling Committee and Board Meetings in Washington DC.

 

Last week, commodity prices and economic reports were mixed.

 

weekly tonnage of raw steel production

On the left, U.S steel production rose ahead of where is was last year and two years ago, at this point in the year. A nice start to 2018.

 

Crude Oil

Oil rose $10/barrel to $70.33 near multiyear highs on solid global demand and continued OPEC cuts to get prices up.

 

US Field Production of Crude Oil

U.S. oil production rose remaining near all-time highs, a great job creator which is working to keep oil prices from rising faster.

 

Iron Ore

Iron ore fell about $1.00/MT to $74.50, staying near multi-month highs on good global demand as supply slowly ramps up.

 

AMM Weekly Heavy Melt Price

On the left, Scrap ferrous prices were steady and remain about double what they were two years ago. Many were saying February prices could be no change. Last week there were some softening comments, but the U.S. dollar hit a 3 year low, which will increase exports, so the direction in not clear.

 

Stainless 304 Scrap Price

Stainless 304 scrap, was no change staying at a multiyear high of $.39 on good demand and supply.

 

Copper

Copper rose a penny to $3.20 on good supply and demand, along with a weaker dollar. Copper is up 2 cents this morning to $3.22.

 

5 Year Copper

The 5 year chart shows copper remains slightly off the recent 4 year high, on good demand and supply.

 

1 Year Copper LME

Copper inventories rose near an annual high on little news or reason.

 

Aluminum

Aluminum rose a penny to $1.02 remaining near the 5 year high, as global manufacturing and construction remains strong.

 

5 Year Aluminum LME

Aluminum inventories held steady near about 8 year lows as production continues to increase to meet demand.

 

US Dollar Index

The U.S. dollar hit another three year low as global growth continues at a pace that is as good or better than U.S. growth. A weak dollar helps U.S. companies that export, increases commodity prices and makes imports into the U.S. more costly.

 

China GDP Annual Growth Rate

China’s 2017 growth was 6.9 percent, above forecast and above last year’s 6.7 percent. Solid growth is keeping upward pressure on commodity prices.

 

US GDP Growth Rate

The U.S.’s economic growth slowed a bit in the 4th quarter to 2.6 percent, ending the year with a 2.3 percent growth, higher than last year’s 1.5% growth, now the ninth year of expansion. 2.6 percent was driven by a downturn in private inventory investment, and raised by increases in local, state and federal government spending.

 

US Durable Goods Orders

U.S. manufactured durable goods orders jumped 2.9 percent in December, vs. 1.7% in November, led by a 7.4 percent rise in transportation equipment. Shipments of manufactured durable goods has been up 7 of the last 8 months, led by fabricated metal products.

 

Manufacturing Purchasing Manager’s Index

The U.S. Manufacturing Purchasing Manager’s index rose to 55.5 percent in January. This is the strongest expansion in factory activity since March 2015, almost three years ago, amid faster rises in production volumes and incoming new work. Export sales also expanded along with a rise in employment.

 

Bridgewater

Ray Dalio is the CEO of Bridgewater, the largest Hedge Fund investment firm in the world, managing $160 Billion. Last week he said, “If you are holding cash you are going to feel pretty stupid”, as it relates to the stock market. This was based on analysis that corporate profits are strong, putting upward pressure on commodity prices.

 

Dow Jones

Wall Street’s Dow Jones jumped 545 points to a record 26,617 as all remains solid in the U.S. and all major global economies and as earning’s forecasts continue to increase based on tax cuts. All major global economies are all growing at the same time, the first time this has happened in a decade, bringing upward pressure on commodity prices in the months to come.

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