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This is the Commodities, Scrap Metal, Recycling and Economic Report by our BENLEE roll off trailers and gondola trailers/open top trailers, September 26th, 2022.
U.S. weekly raw steel production fell to 1.69MT as the U.S. and global economies are slowing.
The U.S. Dollar index. The U.S. dollar vs. other global currencies. When the U.S. dollar index rises, commodity prices in dollars usually falls. It rose to 113.2, the highest in 20 years. This was as the U.S. Federal Reserve has said, interest rates are going up, even if it causes a recession.
WTI crude oil price fell to $78.74/b, the lowest since January, pre-Ukraine war on recession fears. Note that Putin’s new threats stopped a further decline.
The U.S. weekly oil rig count rose slightly to 602, mostly flat for the past two months. Lower oil prices are bringing reduced oil field investments.
U.S. weekly crude oil production was steady at 12.1M/b/d, mostly flat for the past three months. This was as lower prices are bringing less pumping, to support higher prices.
Scrap steel #1 HMS was steady at $328/GT. There is downward price pressure for October, despite lower supply.
Hot-rolled coil steel price rose slightly to $40.10/cwt, $802/T on low demand and lower production.
Copper price fell to $3.35/lb., a two-month low on fears of a global recession, due to higher interest rates.
Aluminum price fell to 98 cents/lb., $2,171/MT on recession fears and lower Chinese aluminum imports.
German August producer price inflation. Note, Germany is the world’s fourth largest economy. It rose a staggering 45.8%, vs last year, a new record high. Energy was up 139%. Excluding energy, it was still a high 14%. Metals, Chemicals, and food rose 20-30%.
U.S. Federal Reserve interest rates rose .75% to 3-3.25%, the highest since 2008. The Federal Reserve is committed to raise rates to slow the economy. This will cause layoffs, so people are willing to make less money, which will slow inflation.
U.S. natural gas price fell to $6.84/MMBtu, the lowest in six months, but still high. This was on record production and record exports. The U.S. abondance of natural gas is great for U.S. jobs as the U.S. ships more gas to Europe to replace Russian gas.
U.S. September S&P manufacturing purchasing manager’s index rose to 51.8, so slow expansion. New orders grew for the first time in 4 months, but production fell.
U.S. August housing starts jumped 1.2%, but higher interest rates will slow starts. 30-year mortgage rates while low vs. 1981’s 17%, have more than doubled in the past 18 months from 2.65% to 6.29%.
Wall Street’s Dow Jones Industrial Average, fell a huge 1,232 points to 29,590. This was on a concern of a prolonged recession. There has been huge wealth destruction in stocks.
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