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This is the Global Economic, Commodities, Scrap Metal and Recycling Report by our BENLEE roll off trailers and gondola trailers, June 13th, 2022.
U.S. weekly crude steel production fell to 1.781MT on good demand but increased cheaper imports.
The U.S. Dollar index. The U.S. dollar vs. other global currencies. When the U.S. dollar index rises, commodity prices typically fall. It rose to 104.15, near a 20-year high. Strong U.S. inflation could bring more aggressive interest rate hikes which raises the U.S. dollar.
WTI crude oil price rose to $120.60/b, with gasoline averaging $5.01/gallon, yesterday, Sunday. This was on good demand, but constrained supply by OPEC and U.S. companies, along with reduced Russian oil on the market.
U.S. weekly crude oil production was steady at 11.9Mb/d, bringing higher prices due to higher demand. Oil companies are committed to increasing shareholder value, but soaring prices are now bringing demand destruction so production will now increase.
The U.S. weekly oil rig count rose to 580, but it is still down 64% from 2014’s high. Higher rigs, brings higher production, which brings lower prices.
Scrap steel #1 HMS price fell to about $393/GT. The high U.S. dollar is hurting U.S. exports and making imports cheaper. Less exports and more imports, are bringing lower prices, hurting U.S. recyclers.
Hot roll coil steel price fell to $51.15/cwt., $1,023/T on good demand, but cheaper imports.
Copper price fell to $4.28/lb. on concern over lower Chinese demand with COVID lockdowns.
Aluminum price fell to $1.22/lb., $2,680/mt, 29% off the recent record. This was on China’s record production and China becoming a net exporter of aluminum.
U.S. May annual inflation rose to 8.6% annualized. Energy drove the increase at 34.6%, gasoline at 48.7% and fuel oil up 106.7%. Good news is that core inflation which excludes food and energy, fell to 6% from 6.2%.
U.S. initial unemployment claims increased to 229,000, still low, but the highest since January. The largest increases were in Georgia and Florida with the largest decrease in Michigan.
U.S. June U of M Consumer sentiment index. It fell sharply to a record low of 50.2 as the current economic condition index fell to a record low.
The U.S. April trade deficit narrowed to $87.1B, the best in 4 months. Exports of natural gas were up and oil exports from the U.S. were near record levels in the past month. Imports declined as the U.S. economy slowed as people were buying less goods.
Wall Street’s Dow Jones Industrial average fell 1,507 points to 31,393. High inflation data and lower consumer confidence bringing recession fears, spooked markets. But consumers still have about an extra $2.3T to spend. This is crazy. Consumers having too much money to spend is causing inflation, as suppliers cannot keep up.
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