The gradual easing of market prices continued this week, with the exception of some industrial metals that dropped sharply.
Paper and plastic packaging grades came down by a few quid as demand has dropped back, but for metals it remains extremely volatile at present.
While the political situation in the UK is bringing uncertainty, the global economic outlook continues to worsen. Buyers of recyclate globally are wondering what this will mean and are beginning to make longer-term decisions based on economic forecasts.
The announcement that Boris Johnson will eventually resign brought a brief strengthening of the pound against the dollar, but it quickly settled to the same $1.20 point it was at last week. However, this was not the case against the euro, which rallied to €1.18 from €1.16 last week.
Although the PRN/PERN price was down by a couple of quid, it was softer demand that brought down the price of packaging grades this week.
PET and LDPE saw falling demand with buyers now appearing to have enough stocks ahead of summer breaks, but also anticipating whether prices will come down further.
For LDPE film, it was also reported that one UK buyer has been out of the market recently, but was now expected to come back in, which may help support prices next week.
HDPE bottles didn’t drop by the same amount, but the effect of the slightly lower PRN/PERN did bring down prices a touch, with the underlying price down a bit too.
Prices for OCC and mixed came off this week.
If you could get an order from Asian and Indian buyers, it tended to be the low £140s at best for OCC.
European buyers for both grades also seemed to be pushing back, although some were still hovering around the £150 level for OCC, as were UK mills that were active. Mixed also dropped a bit in a range of £120 to £130.
It is also being reported that weight and quality claims are becoming more widespread, which is a reflection of a market where demand is falling.
However, multi and SOW continue to be an exception with strong demand continuing for both of these grades.
Non-ferrous metals tumbled again this week, with copper taking the biggest hit. It lost £450 per tonne on last week. Brass dropped by £300 per tonne, and aluminium by £50 per tonne.
After four weeks of continuous price falls, ferrous grades stabilised this week.
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