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This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by BENLEE Roll off Trailers and pup roll off Trailers, February 3rd, 2020.
U.S. weekly steel production was steady at 1.928 Million tons on a slow growth economy and as consumer spending remains solid.
Oil fell hard to $51.53 a barrel, on concerns about the coronavirus which could slow the global economy.
U.S. weekly oil production was steady at 13 million barrels per day, the all-time record. This is great for U.S. jobs and brings lower prices of gasoline and other energy products.
Iron ore rose slightly to $96.50/Ton, due to supply disruptions including a port fire and a cyclone.
Scrap steel #1 HMS price was steady at $259.33/GT, but prices could be down $20/GT or more this week due to scrap being in good supply and the slowing global economy. We heard a large steel mill in the SE was being slammed with material coming in, before the price decrease.
Hot roll coil steel fell to $29.74/Hundred, on slow demand and prices could fall further as scrap prices fall.
Copper fell very hard to $2.51 per pound as health emergencies are being declared around the world and China’s economy continues to shut down.
Aluminum fell to .778 cents per pound on the same concerns over the global economy, due to the coronavirus.
The Eurozone, an economy about the size of the U.S. had its 4th quarter growth fall to a mere .1% and 1.2% for all of 2019. This is very bad news.
China’s January Manufacturing index fell to 50, which since 50 is the neutral mark that separates growth from contraction, so no growth. This was before the coronavirus had a major effect, but new orders did rise. Overall this will further pressure downward commodity prices.
U.S. Growth GDP was 2.1% for last year’s 4th quarter. The first read for total 2019 was 2.3%, down from 2.9% in 2018. This year could be 2.0%, not the forecasted 4, 5 and 6% or more. We must find ways to grow our economy faster.
U.S. Consumer Sentiment for January rose to 99.8, the highest reading in 8 months with low Unemployment and record gains in income/wealth. Consumer sentiment and spending supports growth.
Wall Street’s Dow Jones Average fell 734 points 28,256 on concerns about the coronavirus and global slowing. We remain optimistic long term, but these are very very serious issues.
For those in the U.S., the 30 Year U.S. Treasury bond is low due to the China virus and global slowing, so 30-year mortgages which are linked to 30-year bonds are near 50-year lows. Save money, consider refinancing your home. The average 30-year mortgage is 3.49 percent.
For those that have not signed up, plan to be at the #1 Trade Show for Recycling in Las Vegas, ISRI 2020. A great opportunity to learn the latest to be a Safer business that is structured to grow profitably.
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