Goldsboro Metal Recycling
Metal Commodities and Recycling Report
Monday, March 16th, 2015
Goldsboro, NC, 27530
This is the Monday Commodities and Recycling report, brought to you by BENLEE the industry leader in roll off trailers and open top scrap trailers, as well as Raleigh and Goldsboro Metal Recycling, the leaders in North Carolina for Scrap Metal, Cardboard, Electronics and Junk Cars.
Today is Monday, March 16th, 2015. My name is Greg Brown, President and CEO of the companies.
It was a quiet week in the commodities markets.
On the negative side, the oil and gas drilling rig count continued to decline, with Baker Hughes saying rigs in the U.S. are now down an enormous 38% from a year ago, going from 1,809 to 1,125. This sharp reduction reduces the demand for steel used in these rigs, which continues to cause layoffs in U.S. steel manufacturing.
On the positive side, the weather has greatly improved which will help the demand for steel in construction, cars and trucks, as people wonder out to buy new vehicles. Despite the terrible weather Automotive sales were actually up last month, so there remains only good news for car and truck production.
Despite some of the positive economic news, a major drag on steel, copper, aluminum and other commodities, remains the incredible, strength of the U.S. dollar. It hit yet another 12 year high against the Euro last week of just under $1.05 dollar to the euro, a level not seen since 2003. The strong dollar continues to hurt scrap metal exports and in fact as discussed last week, has scrap metal coming in from Europe, which is driving down U.S. scrap metal prices. Related, finished steel goods continue to be shipped to the U.S from overseas, thereby being a key reason that U.S. steel production hit yet another new multi-year low last week.
Prices of scrap steel remained steady last week and there is word in the industry of a bump up in ferrous pricing in April, mainly due to the incredibly poor flows into scrap yards, even though the weather has improved.
Copper prices also remained steady last week, but are still near their multi-year lows.
Aluminum had a good couple of days toward the end of the week, but it too is near a multi-year low.
Aluminum may rebound soon in that Aluminum inventories are now at low levels not seen in over 5 years.
Note, there were no changes in our scrap metal prices last week in North Carolina, with our Raleigh prices of #1 copper being $2.20 per pound and Prepared Steel being purchased for $6.25 per hundred pounds.
As for the recycling industry, in recent weeks there have been a number of negative Wall Street reports about some of the major publically traded recycling companies. The above pricing and currency dynamics are hurting the industry. At least one small scrap metal recycling operation has announced closing in the past two weeks, shredders are being shut down, there is word of other closings and many operations have cut operating hours to reduce costs.
In a crazy twist, cash flow in some scrap yards has been good in recent weeks. This is like a false high, in that this positive cash flow was due to very low levels of buying scrap material, so there is little money going out. Increased profits are not the reason. This low buying level means profits in scrap yards that have significant retail business will be greatly depressed in March and April.
Lastly, gasoline prices remain well below last year. Many are still hopeful this will boost overall economic spending and therefore boost metal production and prices around the world.
With that we hope all have a Safe and Profitable week. Tune in next week for the Monday Commodity and Recycling report.
Also see What We Buy, for other things we at Goldsboro Recycling buy.
Goldsboro Recycling right here in Wake County, North Carolina is your place for Junk Cars and Salvage Car Removal. Get cash for your junk car!
For today’s prices call our main number at 919-731-5600 and after the Greeting, Press 1, you will hear a recording of “Today’s Prices“.
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