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, November 28th, 2022.
U.S. weekly raw steel production fell to 1.628MT as demand is slowly declining.
WTI crude oil price fell to $76.28/b, near about an 11-month low. China’s COVID lockdowns are hurting demand. Europe’s December 5th ban on Russian oil could increase oil prices.
The U.S. weekly oil rig count rose to 627 as the slow trend up keeps supplies tight. Tight supplies bring higher prices and profits but brings higher inflation.
U.S. weekly crude oil production was steady at 12.1mb/d about flat for the past 7 months. Production should begin increasing in the coming weeks. Also, crude oil exports from the U.S. remain near record levels.
Scrap steel #1 HMS price was steady at $275/GT. Price pressure both up and down remain for December.
Hot-rolled coil steel price fell to $31.91/cwt., $638/T on slowing demand.
Copper price fell to $3.62/lb., on weaker Chinese demand but supplies remain tight.
Aluminum price fell to $1.07/lb., $2,349/mt on the same weaker Chinese demand.
Euro Area consumer confidence, an economy about the size of the U.S. rose to -23.9, but it’s still very low. This was on soaring inflation and the Ukraine war pulling the economy down.
U.S. November S&P manufacturing purchasing manager’s index fell to 47.6 with under 50 being contraction. Output fell due to pressure from inflation and economic uncertainty. Also, labor remains tight, but business confidence improved.
U.S. October durable goods orders rose 1% vs. September, the biggest rise in 4 months, driven by higher transportation equipment.
U.S. October home building permits fell to 1.526M annualized, the lowest since June 2020 on soaring prices and higher mortgage rates.
U.S. weekly initial unemployment claims rose to 240,000 the highest since August. It’s sad, but the Federal Reserve likes this. The more unemployed people mean more people are willing to work for less money, so less inflation.
Wall Street’s Dow Jones Industrial Average rose 601 points to 34,347. That is still off the highs from January, but it’s well above pre-COVID. This was partly caused by the Federal Reserve continues to signal smaller interest rates are coming.