Recent financial market volatility and a weakening in virgin commodity prices have begun to feed through to recovered material prices. Prices for many recovered materials are currently substantially lower than they were in August. At present, the adjustment in prices reflects a return to more sustainable market values rather than the beginning of a crash. Indeed, in some sectors the decline in prices may well be welcomed by UK reprocessors. Moreover, if part of the experience of 2008 is repeated, it is likely that the average quality of recovered materials in the market will improve. That said, an extended period of price volatility in recovered material markets coupled with a further deterioration in broader economic and credit conditions may serve to undermine confidence and delay investment in the sector. To read this report in full, please visit the above-mentioned website.
