July 2007

£ per tonne		Price range
£ per tonne		This month	Last month	Change (low)	Change (high)
Paper	News and Pams	60-75	52-75	+8	-
	Mixed Papers	50-65	45-60	+5	+5
	OCC	60-75	n/a	-	-
Glass	Clear	25-30	25-34	-	-4
	Amber	23-27	23-27	-	-
	Green	16-20	15-22	+1	-2
	Mixed	12.5-16	12.5-20	-	-4
Plastics	Clear PET	160-180	120-175	+40	+5
	Coloured PET	70-110	50-90	+20	+20
	Mixed HDPE	150-200	200-250	-50	-50
	Mixed Polymers/Bottles	55-120	80-140	-25	-20

Notes to table

A report of contrasts: paper prices continue to increase, glass is static and in plastics, while PET prices are rising, prices for mixed HDPE and bottles are falling. Please note that this month’s MPR introduces OCC price quotes on a trial basis.

Paper prices

£ per tonne

Paper graph July 2007

News and pams and mixed paper prices continue to rise on the back of demand from China. Delivered prices, as high as £83 per tonne, have been reported for news and pams.

Looking forward, prices are expected to soften in August, before picking up again in September, as a new overseas buyer enters the market.

Glass prices

£ per tonne

Glass graph July 2007

New transactions this month suggest a downward movement in the top prices paid for clear, green and mixed glass. One subscriber reported a delivered price as low as £7 for mixed cullet otherwise the bottom price remains firm.

PRN reprocessing statistics for Q2 indicate a plentiful supply of glass. As a result, there may be downward pressure on PRN prices with a consequent impact on glass demand.

Plastics prices

£ per tonne

Plastic graph July 2007

There appears to be a clear upward trend in both clear and mixed PET prices. Although spreads have tightened somewhat, reported prices still range from as high as £200 to as low as £40 per tonne.

High demand for natural HDPE remains, with prices as high as £320 being reported. But the heat appears to have gone out of the mixed HDPE market and reported prices are dropping.

As expected, tighter regulations on exporting mixed bottles to China via Hong Kong are hampering demand. Indeed, prices paid in Hong Kong have fallen by as much as 20 – 30%. Consequently, many exporters with shipments still at sea are beginning to face bad debt problems. Looking ahead, a new UK plant, expected to open in September, will provide an alternative destination for mixed bottles.

Notes to table:

Quoted price ranges are typical prices for a full HGV load. Paper and plastics are for collected (Ex-works) material, whereas those for glass, steel, mixed and aluminium cans are for material delivered to a re-processor or port (FAS).
Paper and glass prices typically apply to all loads collected/delivered over a fixed period (e.g. one month), whereas plastics, steel, mixed and aluminium cans prices are typically agreed on a load by load basis.
Some prices submitted by subscribers may not be included if they have been negotiated under unusual circumstances or if special conditions apply.
Full details of methods used can be found at wrap.org.uk/mpr

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Disclaimer:
This report has been produced by The Environment Exchange (t2e) based on unaudited reports of transactions made by subscribers. t2e has not been involved in any way with these transactions and benefits neither directly nor indirectly from the prices reported. Although t2e has no reasons to believe that any of the reported information is false and to the best of its abilities has ensured that the information reports is accurate, neither t2e nor WRAP take any liability for commercial decisions by subscribers based on the content of this report.

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