Global Economic, Commodities, Scrap Metal and Recycling Report April 18, 2022

This is the Global Economic, Commodities, Scrap Metal and Recycling Report by our BENLEE Roll off Trailers and Gondola Trailers, Scrap Haulers, April 18th, 2022.

U.S. weekly crude steel production rose to 1.739MT on continued slow economic growth.

WTI crude oil price rose to $106.95/b on reports Europe might ban Russian oil.

U.S. weekly crude oil production was steady at 11.8Mb/d, up only .1Mb/d in 4.5 months. Oil companies remain in a sweet spot of low production & increased demand, bringing near record profits.

The U.S. weekly oil rig count rose to 548, still down 66% from 2014’s high. The very slow increase supports tight supply and high profits.

Scrap steel #1 HMS price was steady at $510/GT. Downward pressure remains, on good demand and great supply.

Hot roll coil steel price fell to $74.48/cwt on good demand and good supply.

Copper price fell to $4.72/lb. but remains high. Lower supply from Chile, the world’s largest producer is keeping upward price pressure.

Aluminum price fell to $1.59/lb., $3,504/MT on weak demand in China and Japan and increased Chinese exports.

U.S. dollar vs. other global currencies. The higher the index, the lower commodity prices are, that are priced in U.S. dollars. The index rose to 100.7, the highest in 2 years. This is caused by faster Federal Reserve tightening and higher interest rates to tame inflation.

U.S. March NFIB small business optimism index fell to 93.2, the lowest in 2 years. Expectations for better conditions in the next 6 months were the worst on record.

U.S. March annual inflation rose to 8.5%, the highest since December 1981. Gasoline was up 48% and food up 8.8%. Core inflation, which excludes volatile food and energy was up 6.5%.

U.S. March retail sales increased 6.9% vs last year, a big drop from February, with higher gasoline prices. Online sales fell 6.4% while general merchandise stores rose 5.4%.

U.S. April U of M consumer sentiment index, unexpectantly rose to 65.7, off the 11-year low. This was on the belief that gasoline prices are near the peak and on current conditions are better.

U.S. March industrial production rose 5.5% from last year, down from 7.5% in February, but strong. Manufacturing was up 4.9%, mining 7% and utilities 7.5%.

Wall Street’s Dow Jones Industrial Average fell 270 points to 34, 451, down 5.8% year to date. This was on higher interest rates, mixed corporate earnings, and fair retail sales.