The news for the recycling market this week has been dominated by the draft law published by the Chinese Government showing that it intends to ban imports of solid waste.
While recycled plastics are already banned for export to China, along with mixed papers, this is likely to mean around 3 million tonnes of other paper grades are going to struggle to find a home.
There will also be 400,000 tonnes of scrap metal that currently goes to China that will no longer be recycled there.
Prior to this week, people were crossing their fingers that China wouldn’t go through with a ban even though it had previously outlined its intentions, but the atmosphere this week is an acceptance that it will happen.
The only question now is when. Will it be before the end of 2019 or will it be before the end of 2020? Clearly, the market is hoping it will be the latter. But it should also be clear that before the end doesn’t mean at the end. China promised to restrict the number of ports that recycled material could be shipped to before the end of 2018, and this was introduced just this month.
Any implications of this ban are yet to be felt in the market, but new destinations are going to have to be found. The fact Nine Dragons bought mills in the US, Lee & Man is looking at opening a mill in Myanmar and Cycle Link has bought Dutch firm WPT suggests that the Chinese companies are now looking to invest globally rather than focus just on China.
The problem might be for the paper sector in particular, that new mills take time to build and any investment in new mills now, is unlikely to lead to operational capacity before the China ban takes place.
Are we likely to see China struggling to get finished boxes in the coming years? Probably.
This week also saw Vietnam announce a new 100% inspection regime. While it will inevitably be tougher to send material there, it does appear that the country is willing to take recycled paper and plastics on the basis that its growing manufacturing sector requires these raw materials. But it won’t ever have the volume to replace China, and it is likely to only want to take the best quality material now.
However, Vietnam hasn’t shut off imports like Thailand has.
These are going to be trying times for the recycling sector, but in the short-term, it wouldn’t be a surprise if we see aggressive purchasing to stockpile material before the Chinese ban and tougher inspection regimes elsewhere comes in. Of course, quality will be key.
Just to add to the complexity, China has responded to the US implementation of tariffs by devaluing the yuan with the possibility of a currency war now on the horizon too. The idea of the lowering of the yuan is to make Chinese exports cheaper, counteracting the effect of the new tariffs.
But US President Donald Trump is also reported to want to lower the value of the dollar to make US exports cheaper too. This could get messy, and could lead to a stronger pound, which would hurt exporters.
At the moment though, the pound is weakening, which has helped to make UK material cheaper on the market. At the time of writing, it was trading at $1.30, compared to $1.31 a week ago. Just three months ago, the pound was above $1.40, so UK exporters trading in dollars have seen a price advantage in recent months.
The pound has also slumped against the euro this week, from €1.13 a week ago to below €1.12 at the time of writing, as Brexit fears hit home this week.
Recycled plastic
Prices were unchanged again this week in the plastic recycling market.
However, it remains the case that most parts of Asia are closed to exports at the moment, and nobody is taking the risk to put material on the water.
Shipping lines don’t want to send plastics to Asian destinations for fear that the containers will be rejected on arrival, or new regulations will be introduced on the water.
While finding reliable outlets in Asian countries is increasingly hard anyway. Even when they are found, they tend to come in and out of the market at will.
There is a growing view that the Asian recycling market for plastics is dying. Is that the case? It does increasingly feel that way.
Recycled paper
Prices remained unchanged this week, but as mentioned above, the paper recycling market has been gripped by panic over the China situation.
There remains uncertainty too whether CCIC’s inspection regime is sufficient to meet Chinese regulations, but at the moment, very good quality material is still in demand from two of the main buyers and is being shipped.
It is still too early to see whether Chinese buyers will look to stockpile material ahead of the ban, but the difficultly will be in getting enough material of sufficient quality for this to happen.
In terms of OCC prices, there continues to be a premium paid for Chinese specification OCC and some sellers have been able to negotiate an additional couple of quid on top of this during the week as a result. This is only a small part of the market, and didn’t affect the overall price however.
Indeed, at the bottom of the market, to India in particular, the expectation is the market will come off further and below £80 might be offered.
August is traditionally a quieter month for paper recycling, with Europe effectively closed as everyone is on holiday, while Chinese exports are normally lower before picking up throughout Autumn.
Nobody is sure what will happen this year as they still digest all the developments, but the expectation is that August will again be quiet as the market gets to grips with what is going on.
Demand for mixed paper has been good from Europe in recent weeks, but even this is expected to ease in August.
Recycled metal
Copper grades fell back again on the back of tariff fears between US and China. Aluminium though gained £50 per tonne.
Otherwise, metal markets were stable.
Recycling Prices
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UK plastic bottles
wdt_ID UK £ Mixed bottles A Mixed bottles B PET HDPE Natural 95/5
1
16/02/2018
50-100
-10-30
160
360
2
09/02/2018
50-100
-10-30
160
360
3
02/02/2018
50-100
-10-30
160
360
4
26/01/2018
60-110
0-30
170
380
5
19/01/2018
60-110
0-30
170
380
6
12/01/2018
60-110
0-30
170
380
7
05/01/2018
60-110
0-30
170
380
8
15/12/2017
60-110
0-30
170
390
9
08/12/2017
60-110
0-30
170
390
10
01/12/2017
60-110
0-30
170
390
UK HDPE, Wheelie Bins, HIPS, EPS, PP
wdt_ID UK £ HDPE Regrind Wheelie Bins HIPS Regrind EPS PP Regrind
1
16/02/2018
470-490
270-300
300-350
400-450
470-510
2
09/02/2018
470-490
270-300
300-350
400-450
470-510
3
02/02/2018
470-490
270-300
300-350
400-450
470-510
4
26/01/2018
470-490
270-300
300-350
400-450
470-510
5
19/01/2018
470-490
270-300
300-350
400-450
470-510
6
12/01/2018
470-490
270-300
300-350
400-450
470-510
7
05/01/2018
470-490
270-300
300-350
400-450
470-510
8
15/12/2017
470-490
270-300
300-350
400-450
470-510
9
08/12/2017
470-490
270-300
300-350
400-450
470-510
10
01/12/2017
470-490
270-300
300-350
400-450
470-510
UK LDPE film
wdt_ID UK £ LDPE 99/1 LDPE 98/2 LDPE 95/5 LDPE 90/10 Jazz Film
1
16/02/2018
200-270
170
60-100
0-40
-70-(-30)
2
09/02/2018
200-270
170
60-100
0-40
-70-(-30)
3
02/02/2018
200-270
170
60-100
0-40
-70-(-30)
4
26/01/2018
240-290
190
60-100
0-40
-70-(-30)
5
19/01/2018
240-290
190
60-100
0-40
-70-(-30)
6
12/01/2018
240-290
190
60-100
0-40
-70-(-30)
7
05/01/2018
240-290
190
60-100
0-40
-70-(-30)
8
15/12/2017
250-300
200
70-110
10-50
-70-(-30)
9
08/12/2017
250-300
200
70-110
10-50
-70-(-30)
10
01/12/2017
275-315
225
70-110
10-50
-70-(-30)
UK pots, tubs, trays
wdt_ID UK £ Mixed carrier bags Mixed hard plastics Mixed plastic trays
1
16/02/2018
-70-(-30)
-70-(-30)
-55-(-65)
2
09/02/2018
-70-(-30)
-70-(-30)
-55-(-65)
3
02/02/2018
-70-(-30)
-70-(-30)
-55-(-65)
4
26/01/2018
-70-(-30)
-70-(-30)
-55-(-65)
5
19/01/2018
-70-(-30)
-70-(-30)
-55-(-65)
6
12/01/2018
-70-(-30)
-70-(-30)
-55-(-65)
7
05/01/2018
-70-(-30)
-70-(-30)
-55-(-65)
8
15/12/2017
-70-(-30)
-70-(-30)
-55-(-65)
9
08/12/2017
-70-(-30)
-70-(-30)
-55-(-65)
10
01/12/2017
-70-(-30)
-70-(-30)
-55-(-65)
UK OCC, ONP, Mixed paper
wdt_ID UK £ OCC ONP Mixed paper
1
16/02/2018
65
87
10
2
09/02/2018
62
87
10
3
02/02/2018
68
87
12
4
26/01/2018
87
95
37
5
19/01/2018
97
97
45
6
12/01/2018
105
97
55
7
05/01/2018
110
100
62
8
15/12/2017
110
100
62
9
08/12/2017
117
100
62
10
01/12/2017
142
100
62
UK soft mixed, OIN, SOW
wdt_ID UK £ Soft mixed OI news SOW
1
16/02/2018
0-20
120-130
165-175
2
09/02/2018
0-20
120-130
165-175
3
02/02/2018
0-20
120-130
165-175
4
26/01/2018
25-35
120-130
165-175
5
19/01/2018
30-40
120-130
165-175
6
12/01/2018
35-45
120-130
165-175
7
05/01/2018
35-45
120-130
165-175
8
15/12/2017
35-45
120-130
165-175
9
08/12/2017
35-45
120-130
165-175
10
01/12/2017
35-45
120-130
165-175
UK Multi, WHL, BW2
wdt_ID UK £ Multi grade WHL BW2
1
16/02/2018
150-170
238-244
280-290
2
09/02/2018
150-170
238-244
280-290
3
02/02/2018
150-170
238-244
280-290
4
26/01/2018
155-170
238-244
280-290
5
19/01/2018
155-170
238-244
280-290
6
12/01/2018
155-170
238-244
280-290
7
05/01/2018
155-170
238-244
280-290
8
15/12/2017
155-170
238-244
280-290
9
08/12/2017
155-170
238-244
280-290
10
01/12/2017
160-175
238-244
280-290
UK copper
wdt_ID UK £ Copper Dry bright wire New tube Braziery Clean Pyro
1
16/02/2018
4,300
4250-4350
4175-4275
3350-3450
1700-1800
2
09/02/2018
4,300
4250-4350
4175-4275
3350-3450
1700-1800
3
02/02/2018
4,400
4350-4450
4275-4375
3450-3550
1800-1900
4
26/01/2018
4,400
4350-4450
4275-4375
3450-3550
1800-1900
5
19/01/2018
4,400
4350-4450
4275-4375
3450-3550
1800-1900
6
12/01/2018
4,600
4550-4650
4475-4575
3650-3750
2000-2100
7
05/01/2018
4,600
4550-4650
4475-4575
3650-3750
2000-2100
8
15/12/2017
4,200
4150-4250
4075-4175
3250-3350
1600-1700
9
08/12/2017
4,200
4150-4250
4075-4175
3250-3350
1600-1700
10
01/12/2017
4,200
4150-4250
4075-4175
3250-3350
1600-1700
UK brass
wdt_ID UK £ Brass (Honey) Mixed brass Rod swarf Brass/copper rads
1
16/02/2018
2,700
2650-2750
2475-2575
2400-2500
2
09/02/2018
2,700
2650-2750
2475-2575
2400-2500
3
02/02/2018
2,700
2650-2750
2475-2575
2400-2500
4
26/01/2018
2,800
2750-2850
2575-2675
2500-2600
5
19/01/2018
2,800
2750-2850
2575-2675
2500-2600
6
12/01/2018
2,800
2750-2850
2575-2675
2500-2600
7
05/01/2018
2,900
2850-2950
2675-2725
2600-2700
8
15/12/2017
2,650
2600-2700
2425-2525
2350-2450
9
08/12/2017
2,650
2600-2700
2425-2525
2350-2450
10
01/12/2017
2,650
2600-2700
2425-2525
2350-2450
UK aluminium alloys
wdt_ID UK £ Taint/Tabor Alum Bronze solids Low grade cable Household cable
1
16/02/2018
1,350
2050-2150
525-575
1050-1150
2
09/02/2018
1,350
2050-2150
525-575
1050-1150
3
02/02/2018
1,350
2050-2150
525-575
1050-1150
4
26/01/2018
1,350
2050-2150
525-575
1050-1150
5
19/01/2018
1,350
2050-2150
525-575
1050-1150
6
12/01/2018
1,350
2050-2150
525-575
1050-1150
7
05/01/2018
1,350
2050-2150
525-575
1050-1150
8
15/12/2017
1,300
2000-2100
475-525
1000-1100
9
08/12/2017
1,300
2000-2100
475-525
1000-1100
10
01/12/2017
1,400
2100-2200
575-625
1100-1200
UK aluminum
wdt_ID UK £ Clean HE9 Clean alu wheels Cast alu Old rolled alu
1
16/02/2018
800-900
1000-1050
700-750
475-525
2
09/02/2018
800-900
1000-1050
700-750
475-525
3
02/02/2018
800-900
1000-1050
700-750
475-525
4
26/01/2018
800-900
1000-1050
700-750
475-525
5
19/01/2018
800-900
1000-1050
700-750
475-525
6
12/01/2018
800-900
1000-1050
700-750
475-525
7
05/01/2018
800-900
1000-1050
700-750
475-525
8
15/12/2017
750-850
950-1000
650-700
425-525
9
08/12/2017
750-850
950-1000
650-700
425-525
10
01/12/2017
850-950
1025-1125
750-800
525-575
UK stainless steel, zinc, lead
wdt_ID UK £ 18/8 stainless 316 stainless Zinc Lead Lead batteries
1
16/02/2018
725-775
975-1025
800-900
1400-1500
625-675
2
09/02/2018
725-775
975-1025
800-900
1400-1500
625-675
3
02/02/2018
725-775
975-1025
800-900
1400-1500
625-675
4
26/01/2018
725-775
975-1025
800-900
1400-1500
625-675
5
19/01/2018
725-775
975-1025
800-900
1400-1500
625-675
6
12/01/2018
725-775
975-1025
800-900
1400-1500
625-675
7
05/01/2018
725-775
975-1025
800-900
1400-1500
625-675
8
15/12/2017
675-725
975-1025
800-900
1400-1500
625-675
9
08/12/2017
675-725
975-1025
800-900
1400-1500
625-675
10
01/12/2017
675-725
975-1025
800-900
1400-1500
625-675
UK ferrous
wdt_ID UK £ HMS 1 Light iron O/S shearing O/S construction Mixed iron
1
16/02/2018
180
135-175
145-185
130-170
150-190
2
09/02/2018
180
135-175
145-185
130-170
150-190
3
02/02/2018
180
135-175
145-185
130-170
150-190
4
26/01/2018
180
135-175
145-185
130-170
150-190
5
19/01/2018
190
145-185
155-195
140-180
160-200
6
12/01/2018
200
155-195
165-205
150-190
170-210
7
05/01/2018
200
155-195
165-205
150-190
170-210
8
15/12/2017
195
150-190
160-200
145-185
165-205
9
08/12/2017
195
150-190
160-200
145-185
165-205
10
01/12/2017
175
130-170
140-180
125-165
145-185
UK engines, cans, plugs
wdt_ID UK £ EOLV Steel UBC Aluminium UBCs Plugs and chargers
1
16/02/2018
95-135
120-160
1000-1100
110-130
2
09/02/2018
95-135
120-160
1000-1100
110-130
3
02/02/2018
95-135
120-160
1000-1100
110-130
4
26/01/2018
95-135
120-160
1050-1150
110-130
5
19/01/2018
105-145
130-170
1050-1150
110-130
6
12/01/2018
115-155
140-180
1050-1150
110-130
7
05/01/2018
115-155
140-180
1050-1150
110-130
8
15/12/2017
110-150
135-175
1000-1150
110-130
9
08/12/2017
110-150
135-175
1000-1150
110-130
10
01/12/2017
90-130
115-155
1000-1150
110-130
UK glass
wdt_ID UK £ Clear Amber Green Mixed
1
16/02/2018
18-28
14-20
9-13
2-8
2
09/02/2018
18-28
14-20
9-13
2-8
3
02/02/2018
18-28
14-20
9-13
2-8
4
26/01/2018
18-28
14-20
9-13
2-8
5
19/01/2018
18-28
14-20
9-13
2-8
6
12/01/2018
18-28
14-20
9-13
2-8
7
05/01/2018
18-28
14-20
9-13
2-8
8
15/12/2017
18-28
14-20
9-13
2-8
9
08/12/2017
18-28
14-20
9-13
2-8
10
01/12/2017
18-28
14-20
9-13
2-8
PRN paper, plastic, glass
wdt_ID UK £ Paper Plastic Glass Remelt Glass Other
1
16/02/2018
1.80-2.20
56-58
11-12
10.50-11.50
2
09/02/2018
1.25-1.75
56-58
10.50-11.50
10-11
3
02/02/2018
1.25-1.75
56-58
10.50-11.50
10-11
4
26/01/2018
1.50-2.00
54-56
10.50-11.50
9.50-11
5
19/01/2018
1.50-2.00
52-56
10-12
9-11
6
12/01/2018
1.50-2.00
50-54
10-12
9-11
7
05/01/2018
1.25-1.75
51-55
9.50-11.50
9-11
8
15/12/2017
1.25-1.75
48-52
9.50-11.50
8.50-10.50
9
08/12/2017
1.50-2.00
39-43
9-11
9-11
10
01/12/2017
1.65-2.15
29-33
9-11
9-11
PRNs wood, steel, alu, recovery
wdt_ID UK £ Wood Steel Aluminium Recovery
1
16/02/2018
8-9
4-6
20-24
0.4-0.5
2
09/02/2018
7.25-8.25
4-6
20-24
0.4-0.5
3
02/02/2018
7.25-8.25
4-6
20-24
0.4-0.5
4
26/01/2018
5-6
4-6
33-37
0.4-0.5
5
19/01/2018
4.50-5.50
5-7
33-37
0.4-0.5
6
12/01/2018
4.50-5.50
5-7
33-37
0.4-0.5
7
05/01/2018
4.50-5.50
4.50-5.50
33-37
0.4-0.5
8
15/12/2017
4.50-5.50
1-2
14-16
0.4-0.5
9
08/12/2017
4-5
1-2
14-16
0.4-0.5
10
01/12/2017
1.75-2.25
1-3
4-6
0.4-0.5
UK gate fees, RDF, landfill
wdt_ID UK £ RDF - UK Landfill Tax Landfill Gate fee
1
16/02/2018
65-85
86.10
10-20
2
09/02/2018
65-85
86.10
10-20
3
02/02/2018
65-85
86.10
10-20
4
26/01/2018
65-85
86.10
10-20
5
19/01/2018
65-85
86.10
10-20
6
12/01/2018
65-85
86.10
10-20
7
05/01/2018
65-85
86.10
10-20
8
15/12/2017
65-85
86.10
10-20
9
08/12/2017
65-85
86.10
10-20
10
01/12/2017
65-85
86.10
10-20
UK Gate Fees - EFW, AD, MRF
wdt_ID UK £ Energy from Waste Anaerobic digestion MRF
1
16/02/2018
60-90
60-90
60-90
2
09/02/2018
25-35
25-35
25-35
3
02/02/2018
0-30
0-30
0-30
4
26/01/2018
60-90
25-35
0-30
5
19/01/2018
60-90
25-35
0-30
6
12/01/2018
60-90
25-35
0-30
7
05/01/2018
60-90
25-35
0-30
8
15/12/2017
60-90
25-35
0-30
9
08/12/2017
60-90
25-35
0-30
10
01/12/2017
60-90
25-35
0-30
China plastics
wdt_ID USD $ PET flake PET bottle HDPE Natural LDPE 98/2
1
16/02/2018
821
486
874
544
2
09/02/2018
821
486
874
544
3
02/02/2018
760
486
772
538
4
26/01/2018
760
486
772
538
5
19/01/2018
760
486
772
538
6
12/01/2018
760
486
772
538
7
05/01/2018
760
486
772
538
8
15/12/2017
696
403
760
684
9
08/12/2017
785
570
798
630
10
01/12/2017
785
570
798
630
China paper
wdt_ID USD $ OCC ONP Mixed
1
16/02/2018
230
257
149
2
09/02/2018
230
257
149
3
02/02/2018
235
240
155
4
26/01/2018
235
240
155
5
19/01/2018
235
240
155
6
12/01/2018
235
240
155
7
05/01/2018
235
240
155
8
15/12/2017
250
262
151
9
08/12/2017
255
262
159
10
01/12/2017
255
262
159
China metals
wdt_ID USD $ Copper Wire Brass (Honey) Taint/Tabor HMS 1
1
16/02/2018
6,175
4,650
1,285
144
2
09/02/2018
6,175
4,650
1,285
144
3
02/02/2018
6,135
4,635
1,595
153
4
26/01/2018
6,135
4,635
1,595
153
5
19/01/2018
6,135
4,635
1,595
153
6
12/01/2018
6,135
4,635
1,595
153
7
05/01/2018
6,135
4,635
1,595
153
8
15/12/2017
6,205
5,230
1,390
155
9
08/12/2017
6,190
5,210
1,440
130
10
01/12/2017
6,190
5,210
1,440
130
US plastics
wdt_ID USD $ PET bottles HDPE Natural LDPE Grade A
1
16/02/2018
450
585
350
2
09/02/2018
450
585
350
3
02/02/2018
450
585
350
4
26/01/2018
450
585
350
5
19/01/2018
450
585
350
6
12/01/2018
450
585
350
7
05/01/2018
450
585
350
8
15/12/2017
400
585
350
9
08/12/2017
400
585
350
10
01/12/2017
460
585
350
US paper
wdt_ID USD $ OCC ONP Mixed
1
16/02/2018
110
80
40
2
09/02/2018
110
80
40
3
02/02/2018
110
80
40
4
26/01/2018
110
80
40
5
19/01/2018
120
80
60
6
12/01/2018
120
80
60
7
05/01/2018
120
80
60
8
15/12/2017
120
80
60
9
08/12/2017
120
80
60
10
01/12/2017
120
80
60
US metals
wdt_ID USD $ Copper Wire Brass (Honey) Taint/Tabor HMS 1
1
16/02/2018
5,950
3,636
2,512
320
2
09/02/2018
5,950
3,636
2,512
320
3
02/02/2018
6,061
3,636
2,512
320
4
26/01/2018
6,061
3,636
2,512
320
5
19/01/2018
6,237
3,592
2,512
265
6
12/01/2018
6,237
3,592
2,512
265
7
05/01/2018
6,170
2,975
2,468
265
8
15/12/2017
5,906
3,416
2,424
265
9
08/12/2017
5,775
2,909
2,424
265
10
01/12/2017
5,884
3,415
2,468
295