Metal Commodities and Recycling Report
Goldsboro Metal Recycling
We Buy Junk Cars For More Cash
801 N. John St.
Today is Monday, June 15, 2015. My name is Greg Brown, President and CEO of the companies.
Overall while the global economy continues its slow steady growth, China which is a key driver for commodity pricing, continues to be very weak in scrap metal consumption. This weakness along with the uneasiness with the financial debt problems in Greece, brought another problematic week for commodities.
Steel production had a nice little uptick last week and is up for the past few months, but it is still well below last year.
|Oil Rig Count|
One of the reasons for this low steel production in the U.S. is that the Oil rig count has now fallen for 27 weeks in a row, and is now at the lowest point in almost 5 years. Related, imported finished steel remains a problem for U.S. steel mills, thereby hurting their production. As has been reported, scrap yards have been experiencing multi year lows of incoming scrap coming into their yards, so prices rose a bit two weeks ago, which the chart shows.
Copper prices touched a three month low this morning and they remain near their 5 year low. We see no catalyst that will cause an increase in copper prices anytime soon. As we have discussed, China consumes 50% of the world’s copper and China is clearly not increasing their consumption. The China slowdown has caused their government to drop interest rates multiple times in recent months to boost their economy and as we go to press, they may have dropped them again today.
Aluminum dropped a bit this week and is close to the 5+ year low it hit about a year ago. We remain in the belief that aluminum prices are near their bottom due to aluminum inventories are hitting new 5+ year lows.
With energy prices down in the past year, aluminum recycling is less of a driver, so again, there is little reason to believe aluminum prices will be coming up soon.
Prices for Aluminum and copper were unchanged last week in Raleigh, Goldsboro and Wilson.
Steel and Junk cars we up. Please call us at 919-828-5426 in Raleigh, 919-731-5600 in Goldsboro and 252-243-3586 in Wilson for prices.
With that we hope all have a Safe and Profitable week. Tune in next week for the Commodity and Recycling report.