Loading price data
This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, March 25th, 2019. This is a special remote edition as we attend the annual demolition show in Denver.
Last week, commodity prices and economic reports were mixed.
U.S. steel production fell slightly to 1.93 Million tons, near the multi-year high. Tariffs and a slow growth economy remain supportive of good volumes.
Oil rose $.66 per barrel to 59.04 up about 30% this year. Reduced output from OPEC, Iran and Venezuela are driving higher prices, bringing higher gasoline and diesel fuel prices.
U.S. oil production rose slightly to 12.1M barrels a day matching its recent record as higher prices bring more U.S. pumping.
Iron ore fell slightly to $87/ton, as demand remains good, but slowing in many markets.
Scrap steel #1 was steady at $318/GT on steady demand and good supply. With good but slowing demand and a good supply, prices could be steady to down next month.
Hot roll coil steel fell slightly to $34.54 on a good supply and weakening demand in Automotive and other markets.
Copper fell 6 cents to $2.85 on slow global growth. Growth does continue in many markets, but slowly.
Aluminum was up 3 tenths of a penny to 84.6 cents, as many industries slow around the world, while aerospace remains strong.
The U.S. Federal Reserve said they will pause on raising interest rates as they took their January forecast of 2.3% growth for 2019, down to 2.1%, because of global slowing. The White House also released a forecast stating 3.0% growth in 2019, helped by tax cuts.
FedEx one of the largest freight shippers in the world announced a major earnings miss saying, “Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in our decline in our international revenue”. Another indicator of global slowing.
March’s U.S. Manufacturing index continued to show growth, but at the slowest rate in 21 months on slowing output, new orders and employment.
March’s Eurozone Manufacturing, index fell to 47.6, meaning continued contraction, not just slow growth. This is the sharpest contraction in about 6 years, with the sharpest drop in new orders in over 7 years, as European exports to China fall. The Eurozone is larger than the U.S. or China so this slowing is a big deal.
The interest rate on the U.S.10 yr. bond fell to 2.46% which will help keep interest rates down in many markets such as housing.
And with that, mortgage interest rates fell to their lowest rate in about a year, which will support increased home buying.
February’s U.S. existing home sales surged 11.8% to an annual rate of 5.51 million, the highest reading in 11 months and the largest monthly rise since December 2015. Higher sales support future growth.
Wall Street’s Dow Jones Average fell a big 347 points to 25,502 on concerns about global slowing, along with no resolution of the China trade talks.
Member