Recycling prices and market commentary: 15 March 2019

March 15, 2019

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Trading recycled commodities has again been quiet this week.

It is a tough time out there with supply and demand both weak, creating a sort of uncertain equilibrium.

There was a small increase in the price of OCC and mixed paper, while higher grade LDPE also received a boost.

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The same could not be said of copper, which fell, although steel prices saw a small increase.

Market participants are not sure how to proceed at present with haulage, shipping, FX, demand and other relevant factors all influenced by Brexit, Asian market closures and a weaker global economic environment,

With Parliament voting to extend Article 50, the pound rose against the dollar to $1.32 this week, after falling to $1.30 a week ago.

Against the euro, the pound was bouncing between €1.16 and €1.17 this weak, finishing at the cent higher than it was last week.

Recycled plastics

LDPE 98/2 and 99/1 both saw an increase in value this week, rising by around £5 per tonne.

Some were able to extract even more for the material. With Indian markets effectively closed now, demand was coming predominantly from Europe.

Much of this upswing in price could be attributed to the increased PRN/PERN price that was up £3 to £4 on last week, plus a bit more demand from European markets.

Bottle grades were largely stable, but there are some indications that PP grades are set to ease.

Forecast prices

	1-week	4-week
PET	294-300	295-301
HDPE	544-550	539-545
LDPE	284-290	283-289

Recycled paper

OCC gained a couple of pounds this week as some buyers were able to take advantage of an increased PRN/PERN price they could pass on.

Not everyone was doing that though, and many in the market reported no change in price.

The expectation is that there will be little change in OCC prices while demand remains weak, with monthly trading looking set to be the norm for a little while. Also eyes will be on the last week of this month therefore for indications of what April will bring.

Mixed also gained by £4 per tonne, with additional demand coming from Europe and some UK buyers helping to push the price up. It was hitting resistance at this price though, so it would be a surprise if it broke much higher next week.

Forecast prices

	1-week	4-week
OCC	79-83	79-83
ONP	94-98	96-100
Mixed	27-31	26-30

Recycled metals

Steel grades increased by £5 per tonne reflecting an increase on the LME.

But copper grades dropped by £50 per tonne as demand eased.

Other metals grades were stable.