Metal Commodities and Recycling Report, Wilson Metal Recycling, 404 Maury St S, Wilson, NC, 27893, 252-243-3586

Wilson Metal Recycling

Metal Commodities and Recycling Report

May 26th, 2015

404 Maury St S, Wilson, NC, 27893

252-243-3586

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 Tuesday, May 26th, 2015.  My name is Greg Brown, President and CEO of the companies.

 

The overall economy, continues its slow growth around the world, which while too slow for some, the growth is there.  Wall Street continued to hit new highs this week and even the Chinese Stock market is up over 90% this year.

 

Steel Production - Wilson Metal Recycling

 

 

While ferrous production remains low it picked up a bit last week and is near a multi-month high.  While still low, it is better than it has been.

 

Steel Prices - 404 Maury St. S., NC, 27610

 

 

Ferrous prices remained steady this week in the U.S., but price pressure has been building for overseas shipments.  Many believe there will be a $20 or more per GT price increase in June, but as we have seen before this could change.  A key is that even as warm weather has swept across the country; flows of obsolete material into scrap yards remains very weak. 

 

US Oil Rig Count - (252) 243-3586

 

The oil rig count remains a major drag on steel consumption, but after falling for months, week after week, the rig count only fell by one last week.  Low oil prices have caused this dramatic drop, but as we have all seen, with oil prices having risen in recent months, the number of rigs in the U.S. is stabilizing.

 

Copper Prices - Wilson Metal Copper Prices

 

Copper had a very bad week.  It started the week at about 2.93 per pound on COMEX and as we go to press, we are at $2.81 per pound, down about 12 cents for the week.

 

Aluminum Prices - Wilson Scrap Metal Prices

 

Aluminum has continued its dramatic fall in recent weeks.  It remains not clear as to what is happening, but the only thing we know is that prices continue to fall. Chinese imports and warehouses full of material remain reasons for the drop.

 

Another major publically traded scrap company released poor earnings this week.  With ferrous prices stabilizing and coming back a bit, that has been very positive, but Copper and Aluminum have been down, which is a major negative going forward.

 

Housing Starts - North Carolina Scrap Metal Recycling

 

On a very positive note, housing starts hit a multi year high in April.  Housing creates significant jobs and boosts many aspects of the economy, so it is a very positive sign.

 

Prices for Aluminum have come down in Raleigh and Goldsboro this week.

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, Wilson Metal Recycling, 404 Maury St S, Wilson, NC, 27893, 252-243-3586

Wilson Metal Recycling Metal Commodities and Recycling Report

April 20th, 2015
404 Maury St S
Wilson, NC, 27893
252-243-3586

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

Last week was a very tough week in the recycling business, but there are signs of relief.  Two large publically traded companies released that their outside accountants have issued what is called a “Going Concern” statement.  This was due to both companies were in violation of their banking agreements, as of December 31, 2014.  As you may remember, a few weeks ago, Steel Dynamics released that their OmniSource division would lose money in Q1 and Nucor released that their recycling division would have declining profits.  Put together, this means that the companies that were in trouble at the end of 2014, were probably in worse trouble as the quarter ended a few weeks ago.

AMM - Scrap Metal Prices Graph

As for scrap steel prices, they were up a couple of dollars last week based on small increases in exports.  Also on the positive side, Clarkson Capital released buy ratings on Nucor Steel, Arcelor Mittal and AK Steel, due to their exposure to the U.S. automotive and construction industry.  They also wrote as we have mentioned, that the U.S. steel companies may file anti-dumping charges by foreign steel companies, to try and reduce the flood of imports.

AMM - Steel Production Graph

While steel production bumped up a bit last week, it remains near its multi-year lows, again due to the flood of imports and some weak end markets like Oil and Gas drilling.

Baker Hughes - US Oil Rig Count

The oil rig count hit yet another new multi-year low last week and is now back to where it was in November of 2010.  The combined oil and gas rig count is now at the lowest level since July 2009.  With the oil rig count at 734 rigs, that is now an enormous 55% drop from the recent October 2014 high of 1,609 rigs.

CME Group - Copper Prices Graph

Copper had a volatile week, having declined a bit and as of last night, Sunday, was $2.82, but is about 2.74 this morning. A couple of weeks ago, copper went to $2.89 for a number of hours, but excluding that, copper hit a new one month high last night.

Kitco - Aluminum Prices Graph

  

Aluminum had a great week and is now at a multi month high.  We remain feeling good about aluminum pricing as it takes even higher market share in cars and trucks and as the commercial jet market continues to hit new production records.

Kitco - Lead Prices Graph

  

Lead also had a great week and is near a 6 month high, which is good news for those that recycle lead and car batteries.

As for more positive news, this morning, the Chinese central bank made some moves to stimulate their economy, which will help all as well.

In summary, many commodities have stabilized from their free fall and some are hitting multi month highs.  Major damage has been done to the recycling industry, but it looks like the worst may be over.  Importantly, no one it talking like there will be a major recovery like we saw in 2009 and 2010.  Prices and profits are due to stay low.

For those of you that are still on the fence and thinking of coming to the ISRI meeting in Vancouver this week, it will be a great meeting to talk to suppliers, see friends and attend the Metal and Money theft from scrap yards session that I will be speaking at.

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.