This week is expected to be a quiet one in the market for quite a few reasons.
Firstly, it is a short week so there is a day less of trading due to the Bank Holiday on Friday. Many schools are also off now, so many market participants will also be spending time with family.
But also, the market has been quiet all month and so it looks likely that it will pick up some activity in April.
Although this counts as the first week of April trading, it looks set to be mid-month when we will get a feel for the April market.
For OCC, a lot depends on when Chinese buyers will get new import quotas. While for news & pam and mixed paper, European markets, where a lot of this material has headed recently, will also be quiet this week due to Easter.
Plastics are moving at present, but demand is sluggish as alternative markets to China are moving from feast to famine.
In terms of market influencers, the value of the pound has strengthened considerably against the dollar in recent weeks, removing the premium that was given after the Brexit vote for exporters when its value fell.
At $1.41 last week, the pound is expected to maintain that level, or perhaps even exceed it with $1.42 seen as a possibility.
A lot will depend on the publication of the third update of Q4 UK GDP data on Thursday. Although there isn’t an expectation of change from the second reading, this could alter markets one way or the other if there is significant difference in the data.
There doesn’t seem to be a likelihood of significant changes in shipping prices, and deals can still be done.
Interestingly, the S&P GSCI index of the broader commodity market has shown a recent upturn in value, reflecting higher prices recently for oil and primary metals. If this continues, the recycling market could follow in upcoming weeks.
