June 17, 2024
This is the Recycling, Scrap Metal, Commodities and Economic Report, June 17th, 2024.
U.S. weekly raw steel production fell to 1.72MT, down 1.3% from last year and down 2.8% YTD. This was on slow U.S. manufacturing.
WTI crude oil price rose to $78.45/b., on prospects of increased summer demand. China’s surge in hybrid and electric vehicles is geared to cut their oil imports and use. This could cut oil prices globally. China’s hybrid and EVs sales were 46.7% of all vehicles in May. YTD U.S. hybrid and EVs were only about 18%.
U.S. weekly crude oil production rose to 13.2Mb/d. off the recent record of 13.3Mb/d. The IEA, the International Energy Agency, warned that record U.S. production, combined with growth in renewables could lead to an oversupply of oil by 2030.
The U.S. weekly oil rig count fell to 488, the lowest in 2.5 years. This was on great productivity per well and concerns of oversupply. Oversupply brings lower prices, which hurts oil company profits.
Scrap steel #1 HMS price fell to $305/GT on slow U.S. and global manufacturing and on a good scrap supply.
Hot-roll coil steel price fell to $34.51/cwt., $690/T on slow demand and good supply.
Copper price rose to $4.50/lb., on speculation of looming shortages.
Aluminum price fell to $1.17/lb., $2,578/mt on slow Chinese manufacturing, but as the risk of short supply remains.
U.S. June U of M Consumer Sentiment fell to 65.6 on concerns about personal finances because of high prices.
U.S. May Producer prices fell to 2.2% vs last year but prices are still high. Low inflation is good for the overall economy.
U.S. May import prices fell by .4% from April, which helps lower inflation. Fuel, foods and beverages all fell.
U.S. May Consumer Products Inflation, CPI. It fell to 3.3%, which was lower than forecast. Increases in food, shelter, transportation all slowed. Core inflation that excludes the volatile food and energy, fell to 3.1%, the lowest in 3+ years.
U.S. May NFIB Small Business Optimism Index rose to 90.5 the highest in 5 months. Inflation remains the #1 issue and inventories are viewed as too low. Hiring plans are the highest of the year, which is a major positive.
Wall Street’s Dow Jones Industrial Average fell 210 points to 38,589, but remains near the recent record high. U.S. economic growth is slowing, but continues. The record high Dow creates a Wealth Effect. This is when people feel rich, so they spend more.
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