Commodities, Scrap Metal, Recycling and Economic Report October 16, 2023

This is the Commodities, Scrap Metal, Recycling and Economic Report, October 16th, 2023.

U.S. weekly raw steel production fell to 1.698MT, down 1.2% YTD on a slowing U.S. industrial economy.

U.S. dollar vs other global currencies. When the U.S. dollar rises, most commodity prices fall. It rose to 106.5, near a 1 year high, driven by higher than expected inflation. Higher inflation could mean higher interest rates that brings a higher dollar.

WTI crude oil price rose to $87.88/b on the Middle East fighting. Also, on Iran threatening that militants that they support could expand the current fighting.

The U.S. Weekly oil rig count rose to 501. Higher prices are bringing higher production.

U.S. weekly oil production rose to 13.2Mb/d, the absolute highest in American history, ever. Outstanding news for the U.S. economy. Also U.S. oil exports remain strong.

Scrap steel #1HMS price was steady at $330/GT. Supply and demand are mostly in balance.

Hot-rolled coil steel price rose to $36.67/cwt., $733/T as steel mills are working to increase profitability.

Copper price fell to $3.57/lb., near a 4 month low. This was on the higher U.S. dollar, but some positive China demand forecasts.

Aluminum price fell to $.99/lb., $2,192/T on the same higher U.S. dollar, but as China continued slowing aluminum production expansion.

China September trade surplus grew vs August to $77.1B, but below last September. Exports fell 6.2% vs. LY and imports declined the same 6.2%. Sadly, the surplus with the U.S. grew from August to $33.2B from $33.1M.

U.S. October U of M consumer sentiment index fell to 63, the lowest in 5 months. Inflation expectations rose to 3.8% and assessment of personal finances fell. Also, 1 year business expectations fell, but long term expectations were little changed.

U.S. September core inflation which excludes the volatile food and energy, fell to 4.1%, the lowest in 2 years, but well above the 2% target. Shelter rose, but new and used vehicles and food fell. Headline, total September inflation was steady at 3.7%.

U.S. September NFIB small business optimism index decreased to 90.8. Inflation and labor quality were the top concerns.

Wall Street’s Dow Jones Industrial average rose 262 points to 33,670, as the slightly slowing economy is bringing hopes of lower interest rates. Also, the International Monetary Fund increased their Global & U.S. growth forecast for 2024.

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