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This is the Scrap Metal, Commodities, Recycling and Economic Report, by BENLEE and Raleigh and Goldsboro Recycling, June 26th, 2017.
Last week commodity and economic reports were mixed. U.S steel production rose slightly and is a now a bit behind last year, but still ahead of where it was a few months ago. Oil fell about $2.00 a barrel to $43.01 on oversupply issues, with prices hitting a 10 month low last week.
The oil rig count rose for a 23nd week in a row, one the longest stretches ever recorded. The rig count now at 758, is well more than double the low of last year, but still remains about 53% off its high of a few years ago. Importantly, U.S. drillers continue to lower operating costs, so we are seeing drilling rig and job growth, even with oil being in the low $40/Barrel area.
Iron ore rose $1/MT to $57/MT, showing some stabilization after months of falling. We have seen quite a decline in recent months on oversupply of material.
Scrap ferrous prices remained steady. One major steel mill in the Southeast remained open last Saturday to receive product. This is a sign that material is not in good supply. Overall many believe we could see steady prices in the months to come.
Hot dipped galvanized steel remained lower at $865/ton, on little news as markets remain in a slow growth mode.
Stainless 304 remained steady at 29.5 cents after its recent fall, on no major market moves.
Copper rose 6 cents to $2.62/lb. At one point last Friday it hit $2.65, a high we had not seen in a few weeks. Related, spreads have narrowed in recent weeks as slow global growth continues. Prices are up less than a penny this morning to 2.626/lb.
The five year chart shows copper prices have remained in a band in recent months since the major increase late last year.
Copper inventories continue to fall and remain ahead of a year ago, so this fall could help stabilize prices.
Aluminum prices fell 2 cents to 84.1 cents as it continues to decline in recent weeks after hitting multi year highs about a month ago, so prices remain relatively high.
Aluminum inventories rose slightly, but in reality, are near their about 9 year lows on this good demand which should influence new production, and could bring somewhat lower prices.
The IHS Markit US Manufacturing PMI fell to 52.1 in June from May’s 52.7. While still growth, it is the lowest reading since September of 2016 as output and new business growth slowed, offsetting stronger contributions from job creation and inventory building.
Sales of new U.S. single family homes in May increased 2.9 percent to a seasonally adjusted 610 thousand up from 593 thousand in April. The good news is this is more than double the record low of 270 thousand in February of 2011, but it is less than half the 1.4 Million in 2005.
Britain is one of the largest economies in the world. Their monthly industrial order balance which deals with factory orders had it fastest growth this month, than any month since August 1988 almost 30 years ago which supports stable commodity prices.
U.S. initial unemployment claims increased slightly to 241,000. We have now been below the key measure of 300,000 for an incredible 120 straight weeks, the longest stretch since 1970. 47 years ago.
Wall Street’s Dow Jones hit a new high early in the week and ended near that high at 21,395, slightly ahead of last week. Corporate earnings remain strong which supports stable commodity prices.
As always, feel free to call or email me with any questions and we hope all have a Safe and Profitable week.
Courtesy : http://www.benlee.com
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