Wilson Metal RecyclingMetal Commodities and Recycling Report
March 25th, 2015
404 Maury St S
Wilson, NC, 27893
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, April 6th, 2015. My name is Greg Brown, President and CEO of the companies.
It was a very quiet week in the markets.
Last week as April began, there were few if any trades in steel.
Steel production remains near its multiyear low, which is a reason that scrap metal demand remains weak.
|AMM – Steel Production Graph|
With demand low, prices remain steady at their multi-year lows.
|AMM – Scrap Metal Prices Graph|
With the strong dollar, scrap prices also remain low due to scrap metal imports continue to hit the East Coast. Related, a few weeks ago Nucor Steel announced that their DRI plant in Louisiana which has been off line since November was due back on line by last week. It is not clear if this happened. As many know, DRI competes with scrap steel, therefore this will be yet another reason for depressed scrap steel prices.
The number of oil drilling rigs in the U.S., after hitting a hit of 1,609 in October 2104, fell to 802 last week, which is a 50% plunge from the high, which is also keeping steel prices down.
|Baker Hughes – US Oil Rig Count|
On the positive side, March car sales which were released last week were up about 1% from a year ago, but at a very high annualized level of 17.1 Million units.
The price of scrap steel for April will be established this week. With the mixed dynamics we just mentioned, there may be no change in prices on average, with some grades possibly slightly higher and other grades slightly lower.
Copper had a tough week. It started the week at about $2.80 per pound and steadily declined all week, finishing about $2.74 per pound.
|CME Group – Copper Prices Graph|
Aluminum had just about the same trend and declined all week, with Kitco spot aluminum finishing the week just above 78 cents.
|Kitco – Aluminum Prices Graph|
Sadly, nickel prices declined this week, taking stainless steel prices down to lows not seen in years.
The increase in the U.S. dollar vs. the euro remains a key reason for the flood of scrap metal and finished goods coming to the U.S. The dollar’s strength stabilized last week and reversed a bit, but the flood of imported goods continues.
On another subject, the March U.S. jobs report that was released last week was a very disappointing 126,000, making it the lowest since December 2013.
|Bureau of Labor Statistics – Job Market Graph|
While bad weather was one of the causes, others believe a new softening economy is a reason. A growth in high wage jobs remains a major factor in the slow growth economy. Some believe this slow growth, means the fed could further delay the increase in interest rates which is due to happen in the coming months. Of course slow growth keeps scrap metal prices low.
Our congratulations to Jay Sherwood, formally of Schupan and Sons, for his being recognized this month by the Portage Rotary, for all his great work in the community.
Last week we raised copper prices in North Carolina, with our Raleigh prices of #1 copper being purchased for $2.36 per pound. Prepared Steel is still being purchased for $6.25 per hundred pounds.
With that we hope all have a Safe and Profitable week. Tune in next week for the Commodity and Recycling Report.