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This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, October 7th, 2019.
U.S. steel production rose slightly to 1.825 Million tons, but is trending down as manufacturing remains contracting.
Oil fell to $53.08 a barrel, on a slowing global economy. The price remains relatively low, despite flood of oil from Iran and Venezuela, being mostly off the market.
U.S. oil production fell to 12.4M barrels a day, but remains near the record, as lower oil prices pressure lower production levels.
Iron ore fell to $93.00/Ton, on continued global slowing.
Scrap steel #1 HMS fell to about $188/GT, on continued global slowing and as global manufacturing contracts.
Hot roll coil steel fell to $25.67/Hundred a multiyear low, on U.S. Manufacturing contraction.
Copper fell to $2.54, near the multiyear low on slowing global manufacturing.
Aluminum fell to 77.2 cents, near the multiyear low as well, on the same slowing global manufacturing.
September’s global economic index fell to near 50%, the level which would mean zero growth. As part of this, global Manufacturing is actually contracting, while services are growing, which is more than offsetting the manufacturing decline, so overall, there is small growth.
September’s U.S. Manufacturing index fell to 47.8 the steepest monthly contraction in 10 years amid the China trade war. Actual production and employment contracted and, new orders and inventories fell. This is very bad news. As for good news, strong consumer spending is supporting the economy.
August’s U.S. trade deficit fell, meaning it was worse. While there is good U.S. consumer demand, it is tough to hire workers, so lower U.S. production leads to imports to meet demand. A bit twisted. Again, a good U.S. economy means more imports, due to a shortage of workers to make things here in the U.S.
September’s U.S. Vehicle Sales rose to an annualized 17.2M, but they have been trending down for about 2 years. The slowing economy and high student debt are hurting sales.
September’s U.S. non-farm payroll, the jobs report, fell to 136,000 new jobs created. A good number, but nowhere near the 2015 or 2016 months that at times were near 340,000. The economy is slowing as the 2018 tax cut was a onetime sugar high vs the forecasted increasing growth rate we were to get.
September’s U.S. Unemployment rate fell to a 50-year low of 3.5%. Great news as job creation continues. The dark side is, the low rate is also caused by the government blocking legal immigration and others seeking asylum in the U.S., which is limiting workers to hire and slowing U.S. economic growth.
Wall Street’s Dow Jones Average fell to 26,574 near the recent high. Wall Street remains concerned about U.S. and global slowing.
Luggers trucks are a shrinking in demand, but are still a part of many scrap operations. BENLEE bought Huge Haul owner of the original Load Lugger line a few years ago. To save money, you can now rent Load Lugger, Lugger trucks by the month or the year at Premier Truck Sales and Rental, or save big money and buy late model used Lugger Trucks from the Premier Team.
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