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This is the Global Economic, Scrap Metal, Commodities and Recycling Report, by BENLEE Roll off Trailers and Lugger Trucks, September 17th, 2018.
Last week commodity prices and economic reports were mostly mixed.
U.S. steel production rose to a new multiyear high as tariffs remain in place and the U.S. economy continues to grow.
Oil rose $1.00 to $68.99 as Iran and Venezuela reduced shipments, but OPEC and the U.S. more than filled the lost volume to hit record global production levels. In the coming months prices could rise due to tight supplies.
U.S. oil production fell slightly to 10.9M barrels per day, near the recent record of 11.0M. While the U.S. still imports oil from counties like Canada, Saudi Arabia and Venezuela, oil exports from the U.S. to other countries remain near record highs.
Iron ore fell $1.00 to $68.50/Ton on no major news other than tariff issues and a slow growth economy.
Scrap steel #1 Heavy Melt remains about double what it was 2.5 year ago at $303/GT. With demand good, we could have stable prices next month. Hurricane Florence could create major amounts of shred material that could put downward pressure prices.
Hot dipped galvanized steel remained steady at $1,145/Ton, near the multi-year high, as steel production increased on good demand and tariff protection.
Copper fell 4 cents to $2.61/lb., as the U.S. economy remains solid, but global economic tensions on trade continue to make markets nervous. Copper is up 1 cent this morning.
The 5-year copper chart shows prices remain near 1-year lows on tariff and global economic news.
Copper inventories fell to near 1-year lows as the market looks for direction, especially as $200B more in tariffs could be coming from the U.S. on Chinese goods.
Aluminum fell about 2 cents to 90.6, near 5 month lows, as market uncertainty keeps people nervous.
Aluminum LME inventories fell yet again and are now at about 9-year lows as all remain nervous. Demand remains OK in many markets.
August’s U.S. Government budget deficit nearly doubled to $214B, from last August’s $108B, with spending rising 29.7% led by record spending on social security, military and interest payments on our debt. Despite good economic growth, taxes into the government fell 3.2% so we are going deeper into debt, despite the higher growth. Interest alone was $32B, about half of the $65B spent on defense.
August’s U.S. inflation fell to 2.7%, the lowest in 4 months, amid a slowdown in the cost of gasoline and housing. Prices fell for apparel and electricity, with increases in new and used cars. Core inflation which excludes food and energy was 2.2 percent.
Consumer sentiment rose to 100.8, near a 14-year high, with expectations being the highest since 2004, largely due to the prospect for jobs and incomes. Current economic conditions were also viewed as more favorable.
Unemployment claims fell to a 49 Year low as the labor force continues to tighten. As said last week, we need to get more people into the workforce that are sitting home.
Wall Street’s Dow Jones Industrial Average rose a solid 238 points to 26,155 on overall good news, but President Trump said, he is ready to impose an additional $200 Billion of tariffs on Chinese imports.
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