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

GOLDSBORO METAL RECYCLING

METAL COMMODITIES AND RECYCLING REPORT

MAY 18TH, 2015

801 N JOHN ST

GOLDSBORO, NC, 27530 

919-731-5600

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, May18th, 2015.  My name is Greg Brown, President and CEO of the companies.

While commodity prices remain mostly steady, prices remain low across the industry. The S&P 500, the broad index on Wall Street, hit a new all-time high last week.  European stocks remain near their all-time highs as well, meaning things are pretty good, but not for commodities, due to weak manufacturing globally.  Also, the solid U.S economy causing the U.S. dollar to be strong, hurts commodity prices, which are priced in U.S. dollars.

Steel Production - Goldsboro Scrap Metal Recycling

While Ferrous production remains low and dropped a bit last week, a number of steel mills and scrap yards announced closings.  The low production volumes, which are heavily caused by imports, led to AreclorMittal, announcing the closing of their steel mill in South Carolina.  This low volume brought other major announcements, such as OmniSource closing some operations in the Southeast, ISA shutting their shredder, SMS shutting operations in the Midwest and a small operation in PA announced they were closing.  This is after Schnitzer announced 10 days ago they were closing two operations in the SE. 

When we said last week we thought there would be some upcoming closings, we never thought that in one week we would see so many announcements and we have never seen this many announcements in about a week, ever.

US Oil Rig Count - Goldsboro Copper Scrap Metal Prices

With oil drilling being a major consumer of steel, the only good news here is has that the dramatic drop in oil rigs, drilling in the U.S. is slowing.  They have been down for 23 weeks in a row.  While oil prices are still well below those of a year ago, they are in fact up about 40% from the low of a few months ago.  This is slowing the reduction in the oil rig count, but at 660 rigs, they are now down about 60% from the high of 1,609 rigs last October.

Steel Prices - 801 N. John St., Goldsboro, NC, 27530

Ferrous prices remained pretty steady after ferrous selling week two weeks ago.  With production low at U.S. Mills and volumes into scrap yards incredibly low, we see little chance that ferrous prices will be down next month.  If they rise, it will not by a lot.

Copper Prices - NC Scrap Metal Recycling

Copper after rising almost steadily for a few months, seems to have hit a stabilization point and now has spent its second week at just about $2.92 per pound.  With even more good economic news out of Europe and two weeks ago, China adding some stimulus, it is clearly helping support copper prices.

Aluminum Prices - (919) 731-5600

Aluminum is a very different story.  As said, Steel and Copper have been steady.  Aluminum has dropped significantly.  The reason may be partly what caused the major steel declines.  Imports.  There is word of major imports of aluminum coming in from China, so despite volumes being good; prices are down significantly in recent weeks.

On a positive note, congratulations to our friend Randy Goodman in taking a key role with Greenland America to help them in their U.S. growth.

Copper prices were up last week in our NC operations and Aluminum was down.  Steel and Junk cars remained steady.  Please call us at 919-828-5426 in Raleigh and 919-731-5600 in Goldsboro for prices. 

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

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

GOLDSBORO METAL RECYCLING

METAL COMMODITIES AND RECYCLING REPORT

May 4TH, 2015

801 N JOHN ST

GOLDSBORO, NC, 27530 

919-731-5600

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, May 4 th, 2015.  My name is Greg Brown, President and CEO of the companies.

While volumes coming in to recycling operations remain severely depressed, there was some positive news in the commodities markets last week.

AMM - Steel Production Graph - Goldsboro Metal Recycling Steel Prices

Steel production in the United States hit a two month high and at least two steel mills announced $20 per ton price increases. 

AMM - Scrap Metal Prices Graph - Goldsboro Metal Recycling

  

This is leading many to believe that the stabilization in scrap steel prices in recent months will lead to increases this week as we enter ferrous trading week.  In fact there was word of at least one up market last Friday.  On the negative side, despite oil prices now near 4 month highs, the oil rig count, hit a new multi-year low last week.  

With the rig count at 679 rigs that is a staggering 58% below last October’s high of 1,609.  Of course this is important due to drilling rigs use enormous mounts of steel. 

WTRG Economics - Saudi Arabian Rig Count Graph - Goldsboro Metal Recycling

Interestingly, Saudi Arabia is doing all it can to keep prices low and to have the U.S. reduce our drilling.  Their rig count has been hitting historic highs in recent months.  Also, last week the large publically traded company, Waste Management released their earnings. 

While they were up, they said that recycling commodities, which were forecasted to be a drag on earnings of 3-5 cents per share, was now going to be worse, and would be a drag of about 10 cents per share.  This is just another sign that while we see some green shoots in the recycling, things are far from great.

  

As for positive news, last week’s good economic news in Europe, caused the Euro to strengthen to a two month high of 1.12 to the dollar, up from $1.05 of a few weeks ago.  The weakened dollar was a key reason, that copper hit multi month high last week.

CME Group - Copper Prices Graph - Goldsboro Metal Recycling

Aluminum, while not back to where it was about 6 months ago, hit at multi month high and is now actually higher than it was a year ago.

Kitco - Aluminum Prices Graph - Goldsboro Metal Recycling

  

There has yet to be a major translation to consumers spending money saved on gas at the pump, but when that happens, steel consumption should rise.  At this point, consumers are choosing to save this extra money.  

tradingeconomics.com - US Personal Savings Graph - Goldsboro Metal Recycling

We remain optimistic that consumer spending will soon rise and will help recycling volumes, prices and steel production.

There was bad news for a number of scrap yards and demolition customers last week in that they received letters from the bankruptcy court for Hayes Iron and Metal, demanding a “Claw Back”. 

A claw back is when a company goes bankrupt if the court can prove preferential treatment of suppliers, the court can demand money back that was paid out 90 days, before the bankrupt filing. 

There were no changes to our copper prices in North Carolina last week, 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.

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

GOLDSBORO METAL RECYCLING

METAL COMMODITIES AND RECYCLING REPORT

APRIL 13TH, 2015

801 N JOHN ST

GOLDSBORO, NC, 27530 

919-731-5600

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 13^th, 2015.  My name is Greg Brown, President and CEO of the companies.

AMM - Scrap Metal Prices Graph

Last week was ferrous trading week.  It was uneventful in that there was little change anywhere.  In talking to people, most prices were sideways, with a few people saying prices were slightly up and others said slightly down.  We heard in the Midwest, there were some people struggling to sell all their material. 

AMM - Steel Production Graph

Steel production in the U.S. remains terribly depressed as it has been for the past two months and hit a new multi-year low last week.  With the U.S. dollar continuing to be very strong vs. the Euro and with little growth in the European economy, there is little to reduce the flow of European scrap and European steel finished goods from coming to the U.S.  Also, if last week’s announcement of a political deal with Iran turns into a real deal, it means Iran will be able to bring more oil to the market which will keep pressure on oil prices.  That will further hurt U.S. drilling rates, which will hurt steel production, and therefore hurt scrap steel prices.

Baker Hughes - US Oil Rig Count Graph

As for steel used in oil drilling rigs, oil prices remained low last week.  U.S. crude inventories reported their largest weekly increase in 14 years, making this the 13^th week in a row of increases.  U.S. gasoline stock levels hit their highest seasonally adjusted level since record keeping began.  This will help consumer spending with lower oil prices, but is hurting steel prices with lack of demand for drilling. The lower prices continue to cause the oil drilling rig count to decline, which is now down a huge 53% since hitting its high in October of 2014. 

CME Group - Copper Prices Graph

Copper held its own last week and had little change, with no global economic news to make anything happen. 

Kitco - Aluminum Prices Graph

Aluminum prices declined slightly for the week and are near multi-year lows.  On the positive side, Alcoa released their earnings and said that aluminum for commercial trucks was a major growth market for aluminum.  Related, last week there were also reports of Chrysler and GM following Ford with adding major amounts of aluminum to their vehicles to get more weight out of their vehicles to get higher gas mileage.

There were no changes in our copper prices in North Carolina last week, 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.

Lastly, if you are still on the fence and have not decided to go to Vancouver Canada next week for the annual ISRI meeting, book your flights and come.  It is the only place where in one day you can meet executives from every equipment and service company for the industry.  It is also a great place to network.  Related, we will be on a panel discussing metal theft from scrap yards, which remains a major problem in the industry.

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

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

Goldsboro Metal Recycling

Metal Commodities and Recycling Report

March 30th, 2015

801 N John St

Goldsboro, NC, 27530 

919-731-5600

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 30^th, 2015.  My name is Greg Brown, President and CEO of the companies.

It was a quiet week in the markets, other than last Monday

Late afternoon last Monday, copper jumped 10 cents on COMEX and stayed there for a number of hours.  Other than that, copper started and ended the week the same way it started, about $2.78 per pound.  On the negative side of copper, sadly copper and copper alloy scrap exports were down 25 percent this January, year over year. Pic

Also, some will say Copper is a key global economic indicator.  For many years, copper has been called either Dr. Metal, or the metal with a PhD.  The Dr. name is due to many say, the health of the economy can be determined by the price of copper.  The PhD name is for PhDs are smart, so they know what is going on, meaning the price of copper is an indication of the strength of the economy.  Put together, things are ok, but not great.  Copper was about 68% higher in April of 2011, versus today.  It was $4.66 per pound in April 2011 and $2.78 today.

CME Group - Copper Prices Graph

As for steel, for those that missed last week’s report, it’s worth mentioning that about 10 days ago, Steel Dynamics which owns OmniSource the nation’s second largest recycler of metals, issued a profit warning to Wall Street.  They said profits were going to be lower than all had been expecting.  The flood of finished steel coming into the United States from overseas, lower volumes and the lower prices of scrap metal, were the stated reasons.  It was also stated that they would lose money this quarter in Recycling.  Nucor Steel, the second largest steel producer in the United States also issued a profit warning.  They gave the same two reasons as Steel Dynamics and said that their recycling operations would have declining profits.

Related last week there were various meetings in Washington DC with U.S. Senators, the Secretary of Commerce and the U.S Trade representative, to discuss possible dumping of steel into the U.S. from other countries below cost.  As part of this, the President of U.S. Steel has called for congress to act on what he says are these unfair trade practices.

Also, with the new month, steel prices may change this week.  Some say the move could be sideways and there are indications that some prices could be up.  A key issue is, shred feed remains very scarce, due to very low inflows of obsolete scrap.

AMM - Steel Production Graph

On the positive side, after a huge drop in US steel production, we are now seeing a small increase in production levels. 

With that, scrap metal prices remain at their multi year low. 

AMM - Scrap Metal Prices Graph

Aluminum after quite the drop in the past year has stabilized and saw some increases last week.  Many feel very good about the price of Aluminum, as the new Ford F 150 ramps up with its all-aluminum exterior.  Related there is word on the street that Chrysler is about to follow with aluminum exteriors.

AMM - Aluminum Prices Graph

Oil remains a mixed news story.  The oil and gas drilling rig count continues to decline in the United States.

Market Realist - Oil Rig Count Graph

Orders continue to slow down with steel mills making less steel for drilling rigs.  On the positive side as we continue to say, with prices of fuel remaining low, it is starting to have a positive effect on many parts of the economy as people and companies have more money in their pocket.

As for the recycling industry, there is no good news.  Volumes remain low, with margins going up a bit, not due to less competitive pressure, but due to pure math; as prices go down, margin percent goes up.  In reality though, with volumes down, profits are down.

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, but could go up this week.  Prepared Steel is still being purchased for $6.25 per hundred pounds.

Lastly, our best wished to Jim Lawrence, in his new role at AMM.

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