Physical markets are quiet, but there was strong movement for the plastic PRN/PERN this week.
Demand is generally poor across the market, while supply is also tending to be weak leading to an equilibrium.
European interest in buying material isn’t really there across the market. Other destinations seem to be easing off too.
However, on the more optimistic side, there is evidence of improving economic performance across the globe, especially with the Chinese economy benefiting from opening up after its Covid lockdowns. But 2023 is still likely to be bumpy and challenging according to the International Monetary Fund.
The pound dropped against the dollar again this week to $1.19 from $1.21 last. It was at €1.12 compared to the euro from €1.13 last week.
With the PRN/PERN price jumping up by around £45 this week, this was the key factor occurring in the market.
Material prices didn’t necessarily respond to this level, but there was an increase across most packaging grades.
European demand remains poor, but material is finding a way to move. Some seems to be going to domestic outlets, but there is also a bit more export growth that appears to have started towards the end of last year.
All eyes are on which way the PRN/PERN will head over the coming weeks and months, as companies try to ensure they do not lose out if the price suddenly changes.
Markets for all grades are very quiet, with February largely done and most now looking ahead to March trading.
European mills are refraining from buying too much. Domestic and deep sea destinations have eased back on purchasing too, waiting to get a sense of the market for March.
The result of this is that those who were buying or selling were typically doing this at a slightly lower price for OCC. With some mills still seeing value in mixed, the price was stable for it.
There was no change for any grades this week.
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