February 27, 2023
This is the Commodities, Scrap Metal, Recycling and Economic Report by BENLEE roll off trailers, gondola trailers and roll off truck parts, February 27th, 2023.
U.S. weekly raw steel production fell to 1.654MT. January finished steel imports were up 18.3% from December. But they were down 14.4% from last January, yet imports were 24% of January sales.
WTI crude oil price fell slightly to $76.32/b. on hotter than expected U.S. economic data, which is bringing recession fears. That is based on the Federal Reserve could raise interest rates higher for longer.
The U.S. weekly oil rig count fell to 600 and has been trending down for the past three months. Low production with slowing demand, brings higher prices and maximizes profits.
U.S. weekly crude oil production was steady at 12.3Mb/d., in a tight range for 10 months. Oil company shareholders want dividends, not more pumping. More pumping brings lower prices and lower profits.
Scrap steel #1 HMS price was steady at $355/GT. There are some signs of upward price pressure for March as the stronger U.S. dollar could bring scrap imports into the U.S.
Hot-rolled coil steel price fell slightly to $41.53/cwt., $831/T. on slow demand, higher costs and more, lower priced imports .
Copper price fell to $3.96/lb., on recession fears and slow Chinese demand.
Aluminum price fell to $1.06/lb., on record Chinese production and slower demand concerns.
U.S. February S&P Manufacturing PMI increased to 47.8, but under 50 is contraction so it is contracting less. This is the fourth consecutive fall in production. Lead times shortened, yet employment rose the fastest since September and backlogs declined.
U.S. Q4 2022 Annual GDP growth. The economy grew at a good 2.7%, as the total 2022 year grew at 2.1%. Services spending grew more than goods and exports fell 1.6% as imports declined 4.2%.
U.S. January Core PCE, personal consumption expenditure index. This is the federal reserve’s preferred gauge to measure inflation. It rose to 4.7% annually, higher than December’s 4.6%. This supports the idea of higher for longer interest rates.
U.S. January sales of new single family homes jumped 7.2% vs. December, the highest in 10 months, but still at the level of the 1960s. The Federal Reserve wants low sales, so less inflation.
U.S. February U of M consumer sentiment survey was revised higher to 67, the highest since January 2022. Current conditions were revised lower, but expectation were revised higher.
Wall Street’s Dow Jones Industrial Average fell 1010 points to 32,817 on the stronger than expected inflation report. This could bring the higher for longer interest rates that could bring a recession.
Roll off trailers for sale at BENLEE. Tandem axle to eight axle for Michigan. 25′ 11″ roll off truck replacement to 50′. All are heavy duty but optimized to carry the most weight.
As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.