Trading still seems very uncertain at the moment, with no clear patterns of how the market is going to develop over the coming weeks.
Like last week, very few PRN/PERN trades are taking place, despite recent data suggesting compliance has started badly for 2022. Nobody is quite sure why this is happening, but there are quite a few theories as to why it is. What is clear is that nobody in any material seems to want to be the first to trade and set a benchmark. Q1 data is going to look interesting when it is published.
The lack of PRN/PERN trading across all materials is having a big impact on physical plastic packaging in particular.
In paper, it is about trying to find material to sell with demand still good. Although there is pushback from mills on prices going too high.
Only metals seems to be in normal trading patterns at the moment.
In terms of foreign exchange, the pound was a touch stronger than last week at $1.36 from $1.35. The euro was stable at €1.19.
Recycled plastic
The PRN/PERN situation is making trading of plastic packaging grades very difficult, as it is proving very difficult to gauge the price support available without a liquid market for certificates.
However, the underlying situation is largely good still. Bottle grades remain in demand and prices have actually risen again. Domestic and European demand, plus the imminent Plastics Packaging Tax is helping to keep interest in bottles.
Film prices were static this week, meaning there has been no change since the end of January. This is partly down to the PRN/PERN situation, as those trading LDPE often build the certificate into the price of the physical material. But also UK and European buyers are happy to keep prices where they are.
However, there are reports that some Turkish purchases are paying more for lower value material such as Jazz, which may bump the rest of the market up. They also seem to want PET at the moment and are prepared to pay for it at higher levels above everybody else.
It seems that there has been heavy snow in Turkey, and this has disrupted supplies, so now there is strong demand for the materials.
Forecast prices
| 1-week | 4-week | |
| PET | 445-451 | 446-452 |
| HDPE | 724-730 | 725-731 |
| LDPE 98/2 | 470-476 | 474-480 |
Recycled paper
The paper market was very quiet with the logistics of moving material the main focus. Some trades occurred with OCC that helped to push the price up by a couple of quid, but these were few and far between.
Next week may see some more interest due to trading for March.
There was less demand for mixed though, and the price of this dropped a touch.
One factor that is going to need to be considered in next week’s trades are the storms of this week. Material is likely to be wet after bins have blown open, and this could poorer quality material could dampen the market.
Forecast prices
| 1-week | 4-week | |
| OCC | 152-156 | 154-158 |
| ONP | 148-152 | 148-152 |
| Mixed | 112-116 | 114-118 |
Recycled metals
Copper and brass grades increased by £50 per tonne, but everything else saw no change.
Recycling prices
For recycled paper prices, click here
For recycled plastic prices, click here
For recycled metal prices, click here
For recycled glass prices, click here
For PRN/PERN prices, click here
