Scrap Monster

Global Economic, Scrap Metal, Commodities and Recycling Report June 24, 2019

This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, June 24th 2019.


weekly tonnage of raw steel production

U.S. steel production rose to 1.887 Million tons, as the U.S. and global economy remains in a slow growth and even a contraction mode in some areas of the world.


Crude Oil

Oil rose to $57.43/barrel, due tensions in the Middle East, including the downing of an unmanned $130 Million U.S. drone, by Iran.


US Field Production of Crude Oil

U.S. oil production fell to 12.2 M barrels per day, near the record. The trend remains up, as added infrastructure is put into place to move oil out of the oil fields.


Iron Ore

Iron ore rose to $118.50/Ton, a 5 year high on mine shut downs in Brazil. This is a major problem for steel mills.


AMM Weekly Heavy Melt

Scrap steel #1 HMS was steady at $235/GT, a Multi-Year low. There remains upward price pressure due high iron ore prices, but major downward pressure based on slack domestic and export demand.


Hot Roll Coil Steel

Hot roll coil steel fell to $25.54 a new multi-year low as imports grab market share and on a slowing economy.



Copper rose to $2.70, but remains low. Hopes of lower interest rates has brought economic optimism to some markets.



Aluminum also rose slightly to 78.8 cents, remaining year the multiyear low, but with some being optimistic of the future.


China New Scrap Laws

China announced new major cut backs on imports of copper, aluminum and ferrous scrap. This will cause a new level of at least temporary disruptions and lower prices in markets.


Major U.S. Steel Producers

Nucor, U.S. Steel and Steel Dynamics all announced very downbeat Q2 earnings estimates due to declining volumes and price erosion. A very bad sign of things to come.


U.S Federal Reserve

The U.S. Federal Reserve, which sets interest rates, met and released a statement that in summary said, job growth remains strong, but economic activity is slowing, while inflation remains less than the 2% target. Also, business investment has slowed in the 1st quarter, so the Fed may soon reduce interest rates to help the economy.


U.S. Manufacturing Index

June’s U.S. Manufacturing Index fell to 50.5 its lowest growth and pointed to the weakest expansion in factory activity rate since September 2009. Output rose at the softest pace since mid-2016. Note anything under 50% is contraction.


U.S. Manufacturing Index

June’s NY Empire State Manufacturing index, a key economic indicator, fell 26.4 points, the largest monthly decline ever, due to declines in new orders and employment.


Home Builders Index

June’s U.S. Home builder’s index fell to 64 from a 7-month high and remains at an OK level. Low interest rates will help housing, which will put upward pressure on commodity prices and support high wage jobs.


U.S. Housing Starts

May’s U.S. housing starts fell slightly to an annualized rate of 1.27 Million, well below the 60 average of 1.4 Million and less than half the all-time record of 2.5 Million in 1972. More housing brings more high wage jobs.


Dow Jones

Wall Street’s Dow Jones was up 629 points to 26,719 near the all-time record as the U.S. Fed may soon lower interest rates due to slowing and U.S. China trade news was positive.

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