May 6, 2024
This is the Recycling, Scrap Metal, Commodities and Economic Report, May 6th, 2024.
U.S. weekly raw steel production fell to 1.7MT, down .9% from last and down 2.9% year to date on the slowing U.S. economy.
WTI crude oil price fell to $77.99/b., on the weaker than expected U.S. new jobs data and high interest rates. That means slower growth and slower oil demand.
U.S. weekly crude oil production was steady at 13.1Mb/d. and remains slightly off the recent record high. The U.S., oil companies remain careful not to increase production quickly. Too fast of an increase means OPEC would lose share and then they would flood the market with oil to get their share back.
The U.S. weekly oil rig count fell to 499 on great productivity which is keeping the rig count low.
Scrap steel #1 HMS price was steady at $325/GT. Prices could be down $10/GT or more on slow global manufacturing.
Hot-roll coil steel price rose to $40.63/cwt., $813/T., on continued slow U.S. manufacturing.
Copper price fell to $4.57/lb., and remains high on supply threats and good demand.
Aluminum price fell slightly to $1.16/lb., $2,255/mt as supply problems continue.
China April Caxin manufacturing PM index increased to 51.4. This was the sixth straight month of an increase in monthly factory activity. New orders rose the most in over a year and exports surged.
U.S. April ISM manufacturing PM index fell to 49.2, with under 50 being contraction. New orders were down and it was the 19th straight month of a decline in backlogs.
U.S. April new jobs created, were 175,000, well below the 243,000 forecast. Missing the number was great news for Wall Street stocks. Slow growth could bring lower interest rates.
The U.S. April unemployment rate rose to 3.9% and has been under 4% for the longest stretch in 50 years. The rate is still low despite millions of recent immigrants are now working.
U.S. total employment rose to 158.3M a record in American history. The very good economy is bringing inflation. Companies can raise prices because they can. More people are working, means they are buying more.
Wall Street’s Dow Jones industrial average rose 436 points to 38,676. The weaker than expected jobs reports means slower economic growth, which could mean lower interest rates.
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As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.