After a weak in which a deal was done to provide Greece with a €130 billion bailout, the secondary commodity markets have reacted with a shrug.
This is a reflection of the same reaction in the primary markets despite the fact that the markets were constantly urging a resolution. Perhaps it was the realisation that despite the bailout, there are huge challenges to be faced in the European economy that kept any reaction muted.
As a result of this, prices only saw small adjustments on this week’s scrap-ex weekly price report.
Plastic bottles are up a touch in reaction to the fact that the Iran crisis is pushing up the price of oil. Brent crude is currently at $124 per barrel and set for its fifth straight weekly gain.
Natural PET bottles have increased on the scrap-ex price report to £325 to £385 this week compared to £320 to £360 a week ago. HDPE milk bottles have increased to £380 to £415 from last week’s £375 to £410. Mixed bottles were also up to £235 to £260 from £230 to £260 last week for scrap-ex grade A bottles.
Cardboard prices are weaker as demand has softened a little in the past week. Cardboard/KLS was down to £118 to £124 from last week’s £124 to £130.
In terms of paper, news and pams tightened to £114 to £120 from £112 to £122 a week ago.
The spread for green glass has widened to £8 to £14 from last week’s £8 to £12, while all other glass grades remain the same.
Although copper has increased by 10 per cent since the start of the year, the rally seems to have run out of steam. The primary metal was at $8,350 (£5,284) this morning dropping half a per cent since yesterday.
According to a note from Credit Suisse, the recovery is industrial metals is likely to be bumpy. The note said: “Technically, most [industrial metals] have now positive technical momentum ratings, but longer-term trend indicators have remained largely neutral so far. This implies that the price path is likely to be bumpy with occasional setbacks likely on the way up.”
Copper dry bright wire was at £4,725 to £5,125 on this week’s scrap-ex price report from £4,700 to £5,025 last week.
Lead scrap increased to £1,000 to £1,285 from £985 to £1,200 last week. Aluminium used beverage cans also increased to £935 to £1,050 from £925 to £1,025 a week ago.