This is the Global Economic, Commodities, Scrap Metal and Recycling Report, by our BENLEE Roll off Trailers and Lugger Trucks, November 22nd, 2021.
U.S. Weekly crude steel production rose to 1.856MT, as supply and demand are getting closer as the economy grows.
The U.S. dollar index; the U.S. Dollar against other global currencies. It strengthened to 96.07, the highest since July 2020. Importantly, this is on a bet that the strong U.S. economy brings faster interest rate hikes. The strong U.S. dollar overall, but not always, brings lower commodity prices.
WTI Crude oil price fell to $76.10/b, a 7-week low on the strong dollar and demand concerns. The market is also concerned about a coordinated release of oil reserves by major countries which would lower prices.
U.S. weekly oil production, fell to 11.4Mb/d, a huge 1.7Mb/d from March 2020. Less production brings higher oil price. Oil companies are maximizing price to get a higher stock price. Exxon stock has doubled in the past 18 months.
The U.S. Weekly Oil rig count rose to 461, well off the highs of 2014, 2018 and 2020. Oil companies are keeping production low, to get higher oil prices.
Scrap steel #1 HMS price was steady at $465/GT. Importantly, there is price pressure building for December, so it could be up $20/GT or more.
Hot Roll Coil Steel Price fell to $88/cwt, $1,760/T, the lowest in 4.5 months on steady demand and good supply.
Copper price fell to $4.40/lb., near a one month low. Long term demand forecasts remain strong, moving to a carbon free world.
Aluminum price fell to $1.20/lb., $2,645/mt, near an 11-week low. This was on a strong U.S. dollar and weaker demand in China.
China October Industrial production rose 3.5% above last year and .39 above September, which is not shown. This was despite lock downs, high material costs and supply shortages.
U.S. October Retail Sales surged 1.7% the strongest gain since March. This was on early holiday shopping, higher gasoline, and more appliances.
U.S. October industrial production. It rose 5.15% above last year, which was 1.6% above September which is not shown. This was partly due to recovery from hurricane Ida. Note it was trending down since mid-2018 and crashed in March 2020.
U.S. October home building permits rose to 1.65M annualized with more upside. This was helped by lumber prices declining and continued low interest rates.
U.S. weekly initial unemployment claims fell to 268,000 a new pandemic low. Great news is that under 300,000 is a good labor market, with 200-250,000 ideal.
Wall Street’s Dow Jones Industrial Average fell 498 points to 35,602, the lowest in three weeks. This was on concerns over the COVID resurgence in Europe. But as a positive there was record U.S. air travel on Friday since March 2020. Also, as a positive, U.S. company profits remain strong, and inflation has peaked. This led to the S&P and Nasdaq hitting new records.
Tarp systems and tarp parts for sale. Call us or buy at BENLEE’s online store 24/7. Pioneer, Roll-Rite, U.S. Tarp, Donovan and more. Tarps, arms, cylinders, motors, valves.