May 8, 2023
This is the Commodities, Scrap Metal, Recycling and Economic Report. Brought to you by BENLEE roll-trailers, gondola trailers and roll-off truck parts, May 8th, 2023. This is Brian Sides reporting for Greg Brown.
U.S. weekly raw steel production rose to 1.716MT, a 76.2% utilization rate vs. 81.9% last year. This was on slow demand and as steel mills are keeping supply tight.
WTI crude oil price fell to $71.34/b., after being about $68/b, during the week. Higher interest rates are pushing the economy lower, so oil less demand.
The U.S. weekly oil rig count fell to 588 a multi-year low. Slowing global demand and lower prices are keeping rigs low.
U.S. weekly crude oil production rose to 12.3Mb/day but in a tight range for about a year. U.S. production has been steady while OPEC has been cutting production.
Scrap Steel #1 HMS price will fall to about $335/GT on slowing U.S. and global demand.
Hot-rolled coil steel price rose slightly to $56.83/cwt., $1,136/T on steady, to slowing demand and tight supply.
Copper price fell slightly to $3.89/lb., on a slowing global economy.
Aluminum price fell to $1.05/lb., $2,323/mt on the same slowing economy.
China’s April Caixin General Manufacturing Index fell to 49.5 with under 50 being contraction. New orders and lead times shrank and selling prices fell the most since 2015.
U.S. Federal Funds Interest Rate rose to .25% to 5.0-5.25%. This is the highest since 2007, but not even close to 1981. The Federal Reserve said rates could hold at this level.
U.S. April new jobs report. There were 253,000 jobs added, which beat the forecast of 180,000. March was revised much lower. Business services, healthcare, leisure, and hospitality rose the most.
U.S. April labor participation rate which is people 16 years old or older that could work, are working or looking for work. It was steady at 62.6% so 37.4% of people over 16 are not working or even looking for work. A large safety net and 20+ years of a great stock market mean people have enough money and are staying home.
U.S. April unemployment rate fell to 3.4% matching January’s 50 year low. The low percentage means companies are competing for labor. Competing for labor brings higher labor costs so higher inflation.
Wall Street’s Dow Jones Industrial Average fell 424 points to 33,674 despite a huge gain on Friday. This was on recession fears, but good Apple earnings and the good jobs report.
Roll off trailer parts for sale at BENLEE. Galbreath, Dragon, BENLEE, Dunright. Rollers, pins, tarps, tarp arms, sheaves, cylinders, and valves. Call 734-722-8100 to order or buy online.
As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.