Next week is expected to be the benchmark for August for many grades, meaning this week was a steady as she goes until then.
For paper grades, buying for August is likely to set the tone and this will occur for most next week who will trade for the whole month. The expectation at the moment is that prices will be steady.
Metals were also stable.
FX-wise, the pound was trading at $1.37, just a touch down on $1.38 last week against the dollar, and €1.16 for the euro from €1.17 a week ago.
For packaging grades, the publication this week of the Q2 data from NPWD meant people were waiting to see the implications of what it meant for compliance, and how the PRN/PERN market would react.
However, with the data not fully completed, it seemed to be full of errors and was revised downwards hours after being first published. Until there is confidence that the data is complete and up-to-date, those looking to trade PRN/PERNs largely held their counsel.
The price of the PRN/PERN did drop by a couple of quid, but it wasn’t enough to adjust physical market prices with bottle grades seeing no change.
Film grades were slightly different, with domestic buyers looking to ease the price down as we head towards August. Some European buyers raised their prices in anticipation of more competition from Turkey now it is allowed to import again, with Europeans wanting to secure stock while arisings remain low, and before they take their summer breaks.
Looking ahead into August, nobody is expecting dramatic changes in the market next month, but beyond that, most aren’t quite sure how the market will progress with so many factors to consider.
It was another quiet week for the recovered fibre market, with most looking ahead to next week when many are expecting to trade for August.
There is a view held by many that the market is likely to be stable when trading occurs next week, as there is really good demand, but a reluctance from mills for prices to increase.
While some European and UK mills are attempting to talk the price down, others are recognising that competition from South East Asia is strong and is likely to keep the price where it is.
India has also softened its demand, which suggests there isn’t likely to be too much upward pressure on mixed especially in the coming weeks.
Prices were stable for all grades this week.
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