June 24, 2024
This is the Recycling, Scrap Metal, Commodities and Economic Report, June 24th, 2024.
U.S. weekly raw steel production fell to 1.7MT down 2% from last year and down 2.8% year to date. This was on continued slow, but slightly increasing U.S. manufacturing.
WTI crude oil price rose to $80.59/b. on the strong U.S. dollar and increased conflict in the Middle East.
U.S. weekly crude oil production was steady at 13.2Mb/d. just off February’s record high. Oil companies are keeping supplies tight to maximize prices and profits.
The U.S. weekly oil rig count fell to 485 on great productivity per well and the strategy of keeping supplies tight.
Scrap steel #1 HMS price was steady at $305/GT on a good balance of supply and demand.
Hot-roll coil steel price rose slightly to $34.88/cwt., $698/T on continued slow U.S. manufacturing.
Copper price fell to $4.43/lb., on slower demand, but ongoing supply concerns.
Aluminum price fell to $1.14/lb., $2,513/mt on increased supply and lower demand.
China’s May Industrial production rose 5.6%, which was good but below forecast. Manufacturing slowed, but mining increased. Chemicals, Transportation equipment and Automotive increased the most.
U.S. Weekly Initial unemployment claims fell to 238,000, but the second highest in about a year. This shows a good but softening labor market. It is sad, but more unemployment helps lower wages, which lowers inflation.
U.S. May existing home sales fell to 4.11M annualized, the rate of the 1970s, but prices rose while unsold inventory rose slightly. The higher prices and higher interest rates hurts buyers, but helps owners’ equity and their net worth.
U.S. June S&P Global Manufacturing PM index rose to 51.7 a three month high. Manufacturing payrolls rose the most in 21 months. The bad news is the better economy brings inflation, but brings higher salaries and employment.
U.S. June S&P Global, Total economy PM index, rose to 54.6 on good economic expansion, the fastest in over two years. Service are driving the increase as hiring increased. People hate high prices, but inflation is slowing, salaries are up and spending is increasing.
Wall Street’s Dow Jones Industrial Average rose 561 points to 39,150 on the record number of people working and record high salaries driving the economy. Services are strong as said. As an example, there is record travel including record travel to Europe by Americans.
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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.