Metal Commodities and Recycling Report, Goldsboro Metal Recycling, 801 N John St, Goldsboro, NC, 27530, 919-731-5600

Metal 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.

 

Due to our travel schedule this is a special Friday Commodities report July 17th, 2015 instead of our normal Monday report.  My name is Greg Brown, President and CEO of the companies.

 

There was little good news this week in commodities and recycling.

Steel Production

 U.S. steel production ticked up a bit in the last week, which follows with the slow continued increase in the U.S. economy.  As has been reported here, parts of the economy such as home sales and car sales are at 9 to 10 year highs.


Oil Rig Count

The oil rig count that had stabilized and was up for two weeks came down a bit last week.  This follows with oil prices coming down to new multi month lows and means less steel is being used in drilling.

Heavy Melt Price

As for scrap steel prices, as we all know they came down this month and some say they could come down again in August.  With the U.S. dollar strong, scrap metal continues to come in to the U.S. from other parts of the world.  It also means that major importers of scrap steel like China are buying more from Europe and less from the U.S.

Copper Prices

Copper prices which hit new 6+ year lows two weeks ago and then rose a bit, came steadily down last week.

Copper Stocks Level

In another bad sign, copper inventories have been rising for weeks and are near multi month highs.  Bloomberg reported last week that some think copper could drop another 13% this year.  There is no good news for copper.

Aluminum

Aluminum, which also hit new lows two weeks ago, stayed pretty flat at a level just above those new recent lows.

 

As for general news, the U.S. stock market hit new highs last week, and oil hit new multi month lows.  This could help spending and help create demand, which could mean that the bottom for commodities could be close.

 

Permits for new home building rose to the highest level in June since July 2007 and the home building sentiment index, hit a new 10 year high, both very positive signs for good things to come in the economy, but not for recycling, unless China and Europe start growing at a healthy rate.

 

Lastly for those members if ISRI-the scrap recycling organization that have joined the Circle of Safety, you should review joining it to share and improve your safety operational issues with others.

 

For current prices, please call us at 919-828-5426 in Raleigh, 919-731-5600 in Goldsboro.

 

 

 

With that we hope all have a Safe and Profitable week.   Tune in next week for the Commodity and Recycling report.

NC Scrap Metal Prices per pound for Copper at Goldsboro Metal Recycling, 919-731-5600

Scrap Metal Price

Goldsboro Metal Recycling

801 N. John St.

Goldsboro, NC, 27530

919-731-5600

2/26/15

 

Scrap Metal Copper prices may have stabilized after years of declines.  The below talks about that supply issues that could support prices.  While it is clear China growth has slowed, the issue of not enough copper mining and supply problems could mean higher prices.

 

As stated, at Goldsboro Metal Recycling we will continue to do our best to pay you the most for your scrap metal.

 

Greg Brown

gbrown@Goldsboroscrapmetalrecycling.com

919-731-5600

 

Scrap Metal Prices Copper at Goldsboro Metal Recycling

 

Goldsboro Metal Recycling - Copper Scrap Metal Prices





The current bearish sentiment toward copper is being driven by concerns about China's economy slowing with the market ignoring the fact that mine supply is looking increasingly constrained, Citibank's research department said Tuesday. Over the last decade, average global copper consumption growth has been in the region of 2.5% a year, "a remarkably low average given the strong growth in China consumption rates. This average annual rate is less than half that for aluminium." Analyst at the bank David Wilson said that two factors have been at work to limit the rate of global copper demand growth. "Firstly, the strong Chinese demand rates effectively cannibalized demand growth in the Western World, due to the dramatic trend in manufacturing outsourcing to China, a trend that is now beginning to reverse. However, more important was the lack of significant copper supply growth, with mine supply averaging less than 2.5% over the last decade, effectively constraining demand growth," he said. 

The investment bank's view is that copper mine supply is likely to "significantly underwhelm in 2015, just as it was in 2014." The start of 2014 saw a wave of analysts and market pundits predicting a hefty mine supply surplus. This stacked up as raw material, or copper concentrate, hitting a bottleneck at the smelting stage and thus no huge overhang of refined metal. By the end of 2014 the market's view had reversed.
"Reductions in 2015 production guidance for major copper mines have been coming thick and fast, with Rio cutting Kennecott's [Utah] expected output by 100,000 mt, BHP cutting 150,000 mt from Escondida's [Chile] 2015 outlook, while Glencore has cut guidance at Minera Alumbrera [Argentina] by 50,000 mt," (Kalenn's add in:BHP Olympic Dam reductions as well) Wilson said. The analyst reeled off a number of other closures in the research note adding that, "the current focus on Chinese macro-economic indicators represents, in our view, a significant misunderstanding of copper supply and thus copper market drivers."
Based on the bank's data, annualized losses due to declining ore grades, technical difficulties and cost/price related closures, are already at [circa]530,000 mt less than two months into 2015, close to [circa] 60% of typical statistical loss allowances for the year.
"This factor alone suggests supply factors will be key in divining copper prices in the year ahead," the note said. Citi is forecasting a mine supply growth rate of only 1.3% in 2015 from 2014, "a factor that will significantly inhibit refined production growth going forward. We expect increasing supply problems to be highly supportive of copper prices in the second half of the year, and continue to target a return to $7,000/mt levels before year-end." Copper was the worst performing London Metal Exchange base metal contract in 2014, down around 14% on year. There is much talk in the market of the copper price heading towards $5,000/mt in 2015. The metal hit a 2015 year-to-date intraday three-month price low of $5,339.50/mt in January. The contract closed the Monday LME kerb session untraded, last bid at $5,671/mt.
--Ben Kilbey, ben.kilbey@platts.com
--Edited by Jonathan Dart, jonathan.dart@platts.com "