MARKET UPDATE
June 29, 2010
Cardboard
Looking back at last month’s market update we can report that instead of continuing to flatten out OCC prices have actually risen in the past week by £10 per tonne!
Demand is still strong and prices may return to the highs of April and we could see prices approaching the £100 mark. However this is short term and prices will realign and be back at £70/80 before too long.
Steel
Demand has softened further and we have seen a further drop in price with prices of £105/120 being paid for cans.
Aluminium
Again softening with little improvement in demand. Prices will fall further.
Plastic
More negative news with England’s departure from the world cup we will need the continued good weather to increase the tonnage of bottles being available for recycling.
Further softening of demand from China has resulted in significant reductions in prices with some grades falling 30%.
China is now experiencing issues in the labour market with their workers tired of the low wage economy demanding higher pay and going on strike.
The previous abundance of labour has dissipated resulting in demand for low grade materials, which are labour intensive to sort, significantly reducing prices.
Consumption in the west continues to soften as economic growth declines.
