Like last week, there was a sense that the recycling market was on the turn.
For some grades, like OCC, this was the case. But most materials were stable as buyers and sellers wait to see what is going to happen in the coming weeks.
Across the board, arisings are low and this is providing some foundation that means most in the market aren’t expecting a crash. However, much will depend on demand, and while that is waning, it doesn’t seem to be dropping enough to outbalance the lack of material for collection.
Against the dollar, the pound was trading at $1.20 down from $1.22 last week, but the euro remained at €1.16.
It was a stable market this week with buyers and sellers generally taking a hands off approach in order to see where the market is headed.
On the one hand, there is some hope that the PRN/PERN might rise with the supply of them not looking too good. Waste arisings are also collapsing.
But on the other, demand also seems to have dropped considerably, with buyers reluctant to pay the current high prices.
Something is going to have to give, and the expectation is for a gradual slowdown over the coming summer weeks before the market reassesses in early autumn.
OCC and mixed both dropped this week, with the former by around £15 per tonne and the latter by less than a fiver.
For OCC, Indian, Asian and Turkish buyers are largely out of the market, which has left Germany and UK essentially. The latter two are also starting to consider stepping back now they are stocking up, and this is the case for both OCC and mixed.
Indeed, it is understood that some German mills are now full, and others are getting there. German mills are also beginning to fear rationing of gas and what that will mean for its manufacturing sector, and demand from there.
For OCC especially, it is also being noted that part of the price drop this week was as a result of brokers and mill groups looking to hold onto the PRN/PERN rather than passing it on within the price.
Contrary to this, both multi and SOW are currently doing well.
Copper grades gained £100 this week, but only partially offsetting the £775 fall the week before. Both brass and aluminium were down £50 per tonne.
Ferrous grades continued their recent slump, losing £10 per tonne. In the last two months, these metals have dropped by over £100 per tonne.
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