Global economic forces have had a downward impact on paper grades this week, with some plastics also falling with a market correction appearing to be taking place.
In this week’s scrap-ex price report, OCC is at a spread of £105 to £115 down from £124 to £136 a week ago.
News and pams falls to £110 to £130 compared to last week’s £118 to £135 and mixed papers have dropped to £105 to £115 from last week’s £110 to £120.
Scrap-ex understands that the state of the global economy is weighing heavily on buyers, and there is nervousness in the Chinese markets about the eurozone crisis.
However, on a more positive note, efforts to curb Chinese inflation appear to be working, with inflation down to 6.1 per cent in September after reaching a three-year high in July of 6.5 per cent. This makes further interest rises unlikely in China and has seen commodities such as oil and metals rise in price as a result today on the hopes that the Chinese economy will remain strong.
In the secondary markets, prices continue to soften with plastics also edging downwards.
Mixed bottles scrap-ex grade A are down to £240 to £285 this week from £255 to £300 a week ago. Natural PET bottles are priced at £360 to £400 lower than last week’s £385 to £420. HDPE milk bottles have dropped to £365 to £405 from £370 to £415 a week ago.
Wheelie bins are down to £200 to £225 from £210 to £230 last week. LDPE 98/2 is lower at £270 to £310 from £275 to £315 last week.
Clear glass is lower at £14 to £20 (£16 to £22 last week) and amber is at £12 to £18 (£14 to £18 a week ago).
Metals are more positive with recent gains on the LME pushing up prices as the market recovers from significant primary metal price drops a couple of weeks ago.
Dry bright copper is up to £4,325 to £4,550 compared to last week’s £4,300 to £4,500. Aluminium cuttings are up to £1,000 to £1,350 from £975 to £1,350 a week ago.
Ferrous grades have barely changed.