The market for recyclables materials in July is mixed with the paper grades moving higher and virtually all of the rigid grades (ALU, TIN, HDPE Natural, HDPE Color, Film and #3-#7 plastic) moving lower. The decline in the rigid grades has tempered the overall movement upward for the yield value of ResMix. Happily, when you add it all up, ResMix has moved modestly higher for July.
Looking forward, I am somewhat troubled by the potential impact of Brexit which has introduced significant fear and uncertainty into the global marketplace. Just this week we noticed that three real estate funds in England have closed for withdrawals and the US 10 Yr Treasury Note closed at 1.367%, an all time low. Correspondingly, gold is higher by 6% since Brexit) Fears about Brexit’s impact on global growth may lead material buyers to be more cautious in the coming months.
Additionally, nothing has changed with the seasonal factors that impact the market for recyclable commodities which means we can expect demand to shift lower and pricing with it by late summer, all other things being equal.