This is the Commodities, Scrap Metal, Recycling and Economic Report. Brought to you by BENLEE roll-trailers, gondola trailers and roll-off truck parts, May 22nd, 2023.
U.S. weekly raw steel rose slightly to 1.725MT a 76.7% capacity utilization vs. 81.1% last year, on the slowing U.S. economy.
WTI crude oil price rose to $71.55/b., on concerns over tight supply in the 2nd Half of 2023.
The U.S. weekly oil rig count fell to 575 near a one year low. The low count keeps supplies tight, so prices high. That is great for oil company profits but is inflationary.
U.S. weekly crude oil production fell slightly to 12.2Mb/d. remaining in a tight band for 13 months. The discussion of a 1Mb/d increase about 9 months ago is not happening.
Scrap Steel #1 HMS price was steady at $340/GT. There is downward price pressure for June on the slowing global economy.
Hot-rolled coil steel price fell to $52.63/cwt, which is $1,053/t on the same slowing global economy.
Copper price was steady at $3.73/lb. on concerns about China’s slow growth.
Aluminum price fell to $1.04/lb., $2,290/mt. This was on continued record Chinese production and lower production costs.
China April Industrial Production grew 5.6%, a solid number, but under the 10.9% forecast. Oil/gas production grew at 5.6% while electrical machinery grew 17.3%.
U.S. April Industrial production grew .2% vs. last year. A very bad number. Mining surged 5.6%, as manufacturing fell .9%.
U.S. April Retail Sales rose 1.6%, but this is not adjusted for inflation of 4.9%. Motor vehicles and miscellaneous retail were up, while sporting goods were down.
U.S. May NAHB Wells Fargo Housing Index, which is builders’ sentiment. It rose to 50 but is still low. Material shortages and higher interest rates are hurting sentiment.
Federal Reserve Chairman Jerome Powell speech. He said inflation is too high, but interest rate increases may pause. This was because of stress at banks which is causing tighter borrowing and higher rates.
Wall Street’s Dow Jones Industrial Average rose 120 points to 33,421 on concerns about the Federal Reserve saying inflation is too high. The stock market is defying the economic slowdown, forecasted by most.
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