June 26, 2023
This is the Commodities, Scrap Metal, Recycling and Economic Report, brought to you by BENLEE roll trailers, gondola trailers and roll off truck parts, June 26th, 2023.
U.S. weekly raw steel production rose slightly to 1.743MT a 77.5% steel mill utilization rate, vs. 79.1% last year. This was on a slowing U.S. economy.
WTI crude oil price fell to $69.44/b on globally higher interest rates other than China. Higher rates are slowing economies around the world, so they are using less oil.
The U.S. weekly oil rig count fell to 546 down a staggering 66% from 2014’s high of 1,609. The low count brings low production, bringing fairly stable prices with uncertain demand.
U.S. weekly crude oil production fell to 12.2Mb/d., remaining in a tight range for 13 plus months. Steady production keeps prices and profits stable.
Scrap Steel #1 HMS price was steady at $310/GT. There is some downward price pressure for July.
Hot-rolled coil steel price rose slightly to $45.29/cwt, $906/T on the slow U.S. economy.
Copper price fell to $3.81/lb., as China’s new stimulus is in place, but the rest of the world is slowing.
Aluminum price fell to .99/lb., $2,177/mt on China’s record production which may slow, which is being caused by less rain is bring less hydro power.
U.S. May housing starts jumped 21.7% vs April to 1.631M Annualized. This is a good number but under the rate of the 1960’s. The jump suggests that the recent downturn is stabilizing.
U.S. June S&P Total Economy Purchasing Managers’ Index fell to 53, driven mostly due to falling production. Services activity slowed from May’s 13 month high.
U.S. June S&P Manufacturing Purchasing Managers’ Index fell to 46.3. Remember, under 50 is contraction. New orders fell the most since December, as cost pressures fell. This is forecast by some to be 53 in 2024 and 52 in 2025.
U.S. Weekly initial Unemployment claims rose to 264,000, the highest since October 2021, so some job weakness. But remember under 300,000 is considered a strong job market so labor is still tight.
Wall Street’s Dow Jones Industrial Average fell a big 572 points to 33,727. This was as recession fears mount, on weak U.S. manufacturing and a weak European economy. Also, corporate defaults year to date are double last year’s rate.
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The July 4th holiday is next week, so this report will be sent out Wednesday July 5th.
As always, feel free to call or email me with any questions and we hope all have a safe and profitable week.