Commodities and Recycling Report
GOLDSBORO METAL RECYCLING
WE BUY JUNK CARS FOR MORE CASH
801 N. JOHN ST.
This is the 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, June 8, 2015. My name is Greg Brown, President and CEO of the companies.
Overall the economy continues its slow growth around the world. Last week the U.S. had a very strong jobs report and car sales in the U.S. had their best month since July 2005, almost 10 years ago. Related with the slow growth in the U.S., the IMF, the International Monetary Fund, took down their forecast of U.S. growth and urged the U.S. not to raise interest rates in 2015.
While ferrous production came down a bit last week, it has been trending up for months and is now nicely up from its April multi year low. Related a group of U.S. steel mills filed anti-dumping charges against foreign steel mills, due to the flood of imported steel. As the U.S. economy continues to gain strength and with imports of scrap metal flat, the low prices of scrap metal causing low incoming rates to scrap yards caught up with the market.
As was forecast about a week ago, the increase in ferrous pricing became a reality, with prices up $20 to $30 a Gross ton, the first real increase in months. While this increase is significant, the question is, will it be enough to help reverse the enormous drop in material coming into scrap yards.
Oil Rig Count
Steel consumption in the U.S. is not getting a lot of help from oil drilling, which until last year consumed enormous amount of metal. Last week was the 26thconsecutive weekly decline in the oil rig count in the U.S. The good news is with oil now up almost 50% from the multi-year low of a few months ago, the oil rig count is close to stabilizing, but Business Insiders’ graph is nothing other than ugly.
While scrap steel has had its first increase in months, Aluminum has been a totally different story. Prices are at more than a 5 year low.
Imports and last year’s high inventory levels caused some of this decline. Aluminum inventory levels having hit multi year highs about a year ago are now at 5+ year lows. Based on these new inventory lows and the U.S. Dollar having weakened a bit in recent weeks, we would expect Aluminum prices to stabilize in the coming weeks.
Copper after having hit a multi month high about a month ago has been declining for weeks, having dropped about 25 cents in the past three weeks. Of course with China continuing to slow, and 50% of the world’s copper consumed there, we see no major increase in copper prices coming any time soon.
We were in Las Vegas for the annual Waste Expo show last week. Almost all the news there was positive for equipment suppliers. The major drag on the waste industry is that recycling for the companies like Waste Management is not profitable and they are not investing in the recycling part of their business. Waste is OK, but recycling is a problem due low commodity prices. These continued low profits caused one the major metal recycling companies in the Midwest, PSC to announce new site closings. In the past 30 days many scrap metal companies have closing sites and shutting down shredders.
Prices for Aluminum and copper have come down this week in Raleigh and Goldsboro.
Steel and Junk cars we up. Please call us at 919-828-5426 in Raleigh and 919-731-5600 in Goldsboro for prices.