January 15, 2024
This is the Commodities, Scrap Metal, Recycling and Economic Report, January 15th, 2024.
U.S. weekly raw steel production rose to 1.71MT on slow U.S. manufacturing.
WTI crude oil price fell to $72.68/b. despite problems in the Middle East. 2023 was the all-time record for U.S. oil production. The price of oil is now at the level it was in 2007, 26 years ago.
The U.S. weekly oil rig count fell slightly to 499 on great productivity per well and the slow trend of increased production.
U.S. weekly crude oil production was steady at 13.2Mb/d., just off the all-time record. Oil prices remain low as the U.S. maintains the status of the #1 global oil producer. The U.S. is also the #2 oil exporter and & #1 exporter of natural gas, LNG.
Scrap steel #1 HMS price was steady at $380/GT on the slowing global economy.
Hot-roll coil steel price fell to $54.25/cwt., $1,085/T on the continued slow U.S. economy.
Copper price fell to $3.73/lb., on soft demand, but Chinese forecasted government support.
Aluminum price fell to $1.01/lb., $2,219/mt on soft global demand.
U.S. December annual consumer inflation rose to 3.4% vs last year. Energy and vehicles fell, while transportation services rose. Note that gasoline is less today at $3.07/gal. adjusted for inflation, than $.19 in the 1930s.
U.S. December producer price inflation rose 1% vs last year, below forecast. Lower energy prices are helping all parts of the economy.
U.S. Real Clear/TIPP Economic Consumer Optimism index jumped to 44.7, the highest in 8 months. People are more positive about economic prospects and Federal Government policies. People hate higher prices, but salary raises have been higher than inflation in the past year and there are a record number of people working.
U.S. December NFIB Small Business optimism index rose to 91.9, the highest in 5 months. Inflation and labor quality are the top issues. Companies are still concerned about 2024.
The U.S. November trade gap narrowed, got better to $63.2B. Exports of crude oil and autos were down but strong, while imports of cell phones and chemicals fell.
Wall Street’s Dow Jones Industrial Average rose 127 points to 37,593, near the recent record high. This was on mixed inflation data and the good initial weekly unemployment report.
This report is brought to you by BENLEE.
As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.