March 13, 2023
This is the Commodities, Scrap Metal, Recycling and Economic Report. Brought to you by BENLEE roll off trailers, gondola trailers and roll off truck parts, March 13th, 2023.
U.S. weekly raw steel production fell to 1.664MT as steel mills keep supplies tight. Also, as interest rates rise, which increases costs, which is slowing the economy. The Government wants the slower economy, to reduce demand, that will slow inflation.
WTI crude oil price fell to $76.68/b., over concerns of a global slowdown.
The U.S. weekly oil rig count fell to 590 on the same concerns over slowing demand. Oil companies are reducing investment and keeping supplies low. Low supply brings high prices and profits, which maximizes shareholder returns.
U.S. weekly crude oil production fell to 12.2Mb/d in a tight range for 10 months. Production remains steady on concerns over slowing demand.
Scrap steel #1 HMS price was steady at about $385/GT on good domestic and export demand. Slowing U.S. manufacturing is bringing tight supply of prime scrap, so higher prices.
Hot-rolled coil steel price rose to $56.67/cwt., $1,133/T. This was on fair demand, but low production, bringing tight supply, so bringing higher prices.
Copper price fell to $4.01/lb., over concerns over global economic slowing.
Aluminum price fell to $1.05/lb., $2,312/mt on the same global slowing concerns.
U.S. March IBD/TIPP Economic Optimism Index, the public’s view of the economy. It rose to 46.9, the highest since December 2021, but below 50 is pessimistic. Steady at 53 believe we are in a recession, but the index increased to 55 about personal finances.
U.S. February average hourly earnings, rose .2%, which is 2.4% annually, the smallest increase in a year. Slowing wage growth is important to reduce inflation. The smaller wage growth is partly due to more lower wage jobs are being created.
U.S. February new jobs report had a big 311,000 jobs, so a tight labor market. There are a record number of people working in the U.S. Leisure and hospitality added the most. Transportation and warehousing lost the most.
U.S. February labor participation rate which is people 16 years old, or older, working or looking for work. Remember, people home, not working nor even looking for work are not even considered unemployed. They are not even in the unemployed number. It rose to 62.5, the highest since March 2020, but still below, pre COVID. We need this number to be higher.
U.S. February unemployment rate, rose to 3.6% up from a 50 year low of 3.4%. Higher unemployment is bad for workers, but brings less wage demand, which brings lower inflation.
Wall Street’s Dow Jones Industrial Average fell a huge 1,481 points to 31,910, driven by Friday’s huge bank failure. Also, on the hot new jobs report, but lower payroll inflation and higher percent unemployed. Last night the government said they would guarantee, all deposits from Friday’s largest bank failure since 2008.
Roll off trailers: carry heavy loads with a BENLEE. Over permit to 102,000 or more with a tri axle in some states. Buy an 8 axle for Michigan that is 154,000 GVW without over permitting. For Safety: BENLEE uses the same axles, control valve, rollers, etc. for our 2-8 axle trailers.
As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.