The price of LDPE film has dropped this week, according to the scrap-ex weekly price report.
LDPE film 98/2 is now trading at £240 to £285 per tonne, compared to £270 to £310 per tonne last week.
scrap-ex material market director Duncan Frearson said that this is due to inflationary pressure in China. Inflation in China was reported at 5.5 per cent in May, which is a year on year high.
He added: “The big companies in China, which are owned by the government there, are trying to push virgin prices down in an effort to curb inflation. This is then filtering through to the scrap market.
“There is a general feeling that film will keep dropping for a couple of weeks more. Film is driven by the LDPE pellet market in China, and this price directly affects the scrap price here.
“The lowest grades such as carrier bags have effectively lost market value. 98/2 has come back, but the price falls haven’t yet filtered through to agricultural and jazz, but will probably happen in the next week.”
The price of HDPE and PET bottles have largely remained stable, as bottle prices are being supported by demand from UK and European reprocessors. Markets for other materials remain largely stable.
See this week’s scrap-ex Weekly Material Price Report here http://www.scrap-ex.com/pdfs/news/scrap_ex_materials_weekly_16th_june.pdf