Recycling prices and market commentary: 11 August 2023

August 11, 2023

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As we get deeper into the summer holidays, and with very little European demand across materials, markets are very quiet at the moment.

Even those paper grades that had interest in mid-July are not getting the attention they were. For plastics, with European buyers on holiday or not wanting to buy anyway, very little is happening.

Nobody expects any market changes in terms of supply and demand until the end of the summer holiday period now. All eyes are now on September and whether that will herald a change in the market.

The pound was trading at $1.27 same as last week, but was a cent down against the euro at €1.15.

Recycled plastics

With Europe the dominant export market at the moment, there was little movement there with summer holidays compounding the lack of interest that was there before people took August off.

UK buyers are also not too interested hoping that prices may come down more due to this tough continental market.

Of course, markets can change and the picture may look different when people return to work in September, but most expect low volumes of trade for the rest of the summer.

Although the PRN/PERN price increased by around £8 per tonne this week, it wasn’t enough to influence prices in such a quiet market.

Recycled paper

Indian demand had helped to push up the price of OCC in July, but this interest has waned and the higher prices are only being seen when dealing with old orders.

Therefore, the price of OCC came off by just a couple of pounds this week with nowhere stepping up to drive the market.

The feeling is that for all grades the market seems done for August and trade might change again in September.

Those who have multi and SOW to sell are also struggling to get buyers with tissue mills not currently interested amid suspicions that they are finding virgin pulp better value.