The first full week back after the summer holidays brought an environment of nervousness about the months ahead.
This week’s announcement of energy price support for businesses in both the UK and EU will be welcomed, but prices are still going to be high. Even the support for consumers will still lead to people having to find more money to pay their bills, and that is bound to have an effect on the economy.
Of course, a weaker economy will have an impact on demand for recycled goods.
While it wasn’t a week that saw sharp falls in price, some grades eased down.
Prior to the announcement of UK energy support, the dollar had fallen to $1.14 against the pound – the lowest since the 1980s. However, on news of the energy package, it recovered to $1.16. This is still a low value and provides some incentive for deep sea buyers, but demand from those destinations still remains weak. The euro also hovered around the €1.16 level.
Underlying plastic values eased this week for some key grades in both UK and European markets.
There isn’t a huge amount of optimism around at the moment because of the impact of high energy prices on these economies.
Both PET and LDPE grades lost value, the former by around £10 per tonne and the latter by around £20 per tonne.
HDPE bottles held up though as cooling weather and autumn brings more demand for milk.
Monthly PRN/PERN data is due out in the coming days, and many were waiting for this and the impact on the market, before deciding on their trade strategies for both PRN/PERNs and physical material.
For most grades, the price was stable this week. This was largely because there wasn’t much trade occurring as most had traded for September last week.
Demand isn’t great from anywhere for OCC and prices are being kept up by the PRN/PERN, which dropped by around £4 per tonne this week and may have an impact on next week’s prices. However, there will also be lots of eyes on the upcoming monthly PRN/PERN figures to see which way it moves.
Mixed was a bit different, and where this was being traded, the price came off. Some were even trading at £50 or below, although much of it was still in the £60s. This is largely down to German mills that have been stepping back, as they have typically been the biggest buyers for this grade over recent months.
Copper grades were up by £50 per tonne this week, while ferrous metals increased by £10 per tonne.
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