With 2001 firmly behind us and an economic upswing forecasted there is hope that overall market prices for secondary materials, which suffered last year from the weak economy, have pretty much “bottomed-out.”
After many months of lower averages, the used beverage containers (UBC) market managed to climb to about $1,700/metric tonne (about US$50 cents per pound), possibly due to decreased inventory outside of North America. While the market has been somewhat stronger, forecasts call for higher average prices as we move into the second half of 2002. Like aluminum, scrap steel pricing also experienced a downward trend beginning in the summer of 2001 with average prices reaching only half of what they were in 2000.
PET plastic has struggled since last fall due to lower sales in primary end-use markets. HDPE underwent a similar struggle with weak market conditions. Though the market for these materials remains a question mark some are confident that prices will be solidified in the near future, especially if the export market picks up for PET.
Scrap market prices quoted for ONP and OCC dipped a bit as we moved into March. Previous reports from our contacts were somewhat stagnant as we entered the New Year, likely due to oversupply and a softer demand.
For more information, contact Damian Bassett at 416-594-3456, extension 229 or visit www.csr.org (the CSR Sheet in located under “Publications”).