Nervousness pervades the market at the moment, and this has led to a fall in price in most materials.
With global economic news continuing to be bad, this is beginning to be reflected in the secondary commodity markets with prices edging lower.
The eurozone crisis continues to dominate, but the HSCB China Flash purchasing managers index fell in September to 49.4 from 49.9 in August showing a contraction in manufacturing output in China. UK growth is expected to remain sluggish with more quantitative easing looking like it is on the way. The US Federal Reserve launched Operation Twist in an effort to stimulate its economy through buying long-term government debt, which the global market did not embrace with enthusiasm.
Metals have suffered on the LME and this has been reflected in the price of scrap. Copper dry bright has fallen to £4,550 to £4,700 this week compared to £4,850 to £5,210 last week. Aluminium cuttings have eased down to £1,000 to £1,250 from £1,050 to £1,275 a week ago. Lead batteries are a little lower at £570 to £615 compared to last week’s £575 to £620.
Ferrous is largely holding up at present with the spread for Grade OA only widening a little to £260 to £330 this week from £265 to £330 last week. Grade 1 old steel was a little lower at £240 to £265 from £245 to £270 a week ago.
Steel cans have fallen to £175 to £220 from last week’s £185 to £220. Aluminium baled cans have dropped quite a bit to £925 to £1,025 compared to £980 to £1,100 a week ago.
Mixed bottles scrap-ex grade A have eased to £265 to £310 from last week’s £270 to £315. Natural PET loses £10 per tonne to £400 to £425 from £410 to £435 a week ago. HDPE milk bottles move lower to £370 to £410 from £375 to £415 last week. LDPE 98/2 falls £10 to £275 to £315 compared to last week’s £285 to £325.
In terms of paper grades, OCC drops to £120 to £130 from last week’s £132 to £140. News & pams is at £118 to £136 widening from last week’s £130 to £136.
Glass grades have also fallen to £16 to £22 for clear glass from £18 to £24 last week. Mixed hits £0 to £6 with a gate fee possibly back on the agenda from last week’s £2 to £8.
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