Loading price data
This is the Commodities, Scrap Metal, Recycling and Economic Report. Brought to you by BENLEE roll off trailers and gondola trailers/open top scrap trailers, December 5th, 2022. This is Brian Sides reporting for Greg Brown who is out of the country.
U.S. weekly raw steel production fell to 1.625MT as the global economy continues to slow.
WTI crude oil price rose to $79.98/b, on China softening COVID restrictions. Also, OPEC is keeping their production cuts, despite new EU Russian oil sanctions. The EU set a $60/b cap on Russian oil, still a nice profit.
The U.S. weekly oil rig count was steady at 627, as a very, slow trend up continues. There is a huge U.S. oil export opportunity as Russian oil is sanctioned.
U.S. weekly crude oil production was steady at 12.1mb/d. A very limited increase in production is keeping supplies tight, so prices high.
Scrap steel #1 HMS price was steady at $275/GT. Recent low prices are hurting supply. A HRC price increase could help pay for higher scrap prices.
Hot-rolled coil (HRC) steel price rose to $32.97/cwt, $659/T. Steel mills announced a $60/T price increase to help offset higher labor and energy costs.
Copper price rose to $3.85/lb., near a four-month high on increased demand. Also, the U.S. Federal Reserve signaled they may slow the rate of interest rate increases, which will increases demand. There is also a record low inventory.
Aluminum price rose to $1.15/lb., $2,545/mt., near a six-month high as the Chinese look to spur their economy and on tight supplies.
China November General Manufacturing Caxin Purchasing Manager’s index. It edged up to 49.4 but was the fourth month below 50, which is contraction. This was on COVID shutdowns in many parts of China.
U.S. November ISM manufacturing purchasing manager’s index fell to forty-nine, the first contraction since May 2020. Prices, lead times, backlogs are declining.
U.S. October Personal Consumption Expenditure (PCE) Index, fell to 6% year over year, the lowest of the year. Goods increased 7.2% and services increased 5.4%. Core PCE that excludes food and energy fell to 5%.
U.S. Q3 Economic growth, GDP grew at 2.9%, revised up from the 2.6% initial reading. Exports grew as imports fell. Oil exports are near record level. Also, consumer spending grew as vehicle sales declined.
U.S. November non-farm payroll (new jobs created) added 263,000, which was above forecast. Hospitality and local government grew as retail fell. A classical recession with jobs losses is not here yet.
U.S. November unemployment rate was steady at a low 3.7%. The tight labor market is bringing higher labor inflation.
U.S. November labor participation rate, which is people 16-year-old or older that are working or looking for work. It fell to 62.1%, as people continue to retire, but prime age workers 25-54 years old, is 82.4% down .6% pre-COVID.
Wall Street’s Dow Jones industrial average rose eighty-three points to 34,430 on the stronger than expected jobs report and higher hourly earnings. Also, on the Federal Reserve saying rate hike increases will slow in December.
Member