This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailers and Lugger Trucks, November 15th, 2021.
U.S. Weekly crude steel production fell to 1.84MT on good demand. Importantly, steel mills continue maximizing the price demand matrix to keep prices high.
WTI Crude oil price fell to $80.79/b., the third weekly drop. The U.S. may release oil reserves and on higher U.S. production.
U.S. weekly oil production, was steady at 11.5Mb/d, but down a huge 1.6Mb/d since March 2020. U.S. oil companies are keeping production down to get higher prices. If the U.S. went back to pumping the same amount of oil we did in March 2020, the global price of oil would crash. Gasoline would be about $2.25/gallon, not $3.45.
The U.S. Weekly Oil rig count rose to 454. It was almost double in 2019, and its well-off March 2020. Importantly, it was more than triple in 2014. U.S. oil companies are key to global inflation.
Scrap steel #1 HMS price rose to $465/GT on good demand and as supply is improving.
Hot Roll Coil Steel Price fell to $92.50/cwt, $1,850/T. This was on good demand and increasing supply.
Copper price rose to $4.45/lb. Moreover, this was on low inventories, but on concerns over China’s slowdown.
Aluminum price rose to $1.21/lb., $2,667/mt, up from an 11-week low. This was as inventories are at a 16-year low and on lower China production, yet good demand.
China’s October producer prices, surged 13.5%, the highest in 26 years. This was on shortages of raw materials and electrical power. And we thought U.S. inflation was high?
China October trade surplus, surged to $84.5B a record high. Exports to the U.S. were near a record high. This is great upside as we work to manufacture more in the U.S.
U.S. November U of M consumer sentiment index. It fell to 66.8 on current inflation fears, but the 5-year outlook remained steady.
U.S. annual inflation rose to 6.2% with gasoline, food and new and used vehicles the highest. As for some good news, core inflation which excludes volatile food and energy, was a lower 4.6%.
U.S. September job openings, fell 191,000 to 10.4M. There were less government and real estate jobs. This is great upside to the economy as jobs are filled.
Wall Street’s Dow Jones Industrial Average fell 228 points to 36,100, but near the all-time record high. This was on lower consumer sentiment and high inflation fears, but near record highs, brings the wealth effect. As people feel wealthy, they spend, which supports consumer spending.