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This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, February 4th, 2019.
Last week, prices and economic reports were mostly mixed.
U.S. steel production rose slightly to 1.922 Million tons, on continued tariff protect against mainly Mexico, Canada and others. China has been minimally affected by this, in that Obama dumping tariffs years ago mostly stopped their steel imports to the U.S.
Oil rose $1.66/barrel to $55.35 on OPEC cutbacks and a slow growth global economy.
U.S. oil production maintained the record of 11.9M barrels a day. Moving to more renewable sources and exporting more oil to reduce our trade deficit is great for job creation.
Iron ore rocketed up about $11/ton $86.50 in reaction to the horrific Brazilian dam collapse at a Vale iron ore site. Hundreds of people are dead and missing.
Scrap steel #1 was steady at $298/GT with good, but slowing global demand. February scrap prices remain in flux, with downward pressure on primes and a mixed picture on cut grades.
Hot roll coiled steel rose slightly to $33.64 per Hundred, as Nucor and others announced prices increases. With Automotive and housing down, it is not clear if the increase will stick.
Copper rose 4 cents to $2.77 on strong U.S. jobs data, interest rate stabilization and good China trade news.
Aluminum was up half a penny to, 84.97 cents, remaining low on global slowing.
Global steel production rose 4.6% in 2018 with China manufacturing almost 11 times, U.S. production. India became the world’s second largest steel producer, jumping ahead of Japan.
The nonpartisan Congressional Budget Office released a forecast saying 2018 growth was 3.1%, 2019 will be 2.3% and then slowing to 1.7% to 1.8% in the coming years. We need to get this to 3% and more.
China’s January Manufacturing index fell to 48.3, from December’s 49.7 and since under 50, that means contraction. China is the U.S.’s third largest market that buys goods made in the U.S., so this is bad. Also, China makes about half the world’s steel and consumes half the world’s copper, so lower growth is a negative for commodity prices.
January’s U.S. Consumer sentiment settled at 91.2, above the primary estimate of 90.7, but it was the weakest sentiment since President Trump was elected. The end of the government shutdown caused only a mild boost. The recent rise on Wall Street should help, but the shutdown had people nervous about the economy.
Jerome Powell of the Federal Reserve had a press conference saying, due to concerns about U.S. and global growth, the Fed is holding on further interest rates. Bad news about the slowing, good news about holding interest rates.
January’s U.S. Jobs report had 304,000 jobs created, with leisure and hospitality growth the most, followed by construction. A great report.
January’s percent of people 16 years old and older that can work, rose to an about a 5.5 year high of 63.2%, as people that have been sitting home have come back into the workforce. This means about 27% of the possible workforce is still not working.
January’s U.S. Unemployment rate rose to 4.0%, which is good, not bad news. It is up, due more people are looking for work, vs sitting home.
Wall Street’s Dow Jones was up a big 872 points 25,601. The Dow’s January 7 percent rise was its best month since 1989. Keep in mind December was the worst December in 30 years. Strong job creation and steady interest rates drove the Dow higher.
BENLEE remains the #1 Roll off Trailer Manufacturer in the U.S. You can buy directly from BENLEE. You can also rent BENLEE trailers by the week, month or year. Just call Vicki and Premier Truck Sales and Rental.
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