Falling polymer prices - a result of the drop in the cost of crude oil - are driving packing prices down across the board. UK PET, LDPE, HDPR, polypropylene and polystyrene are down month on month and have hit levels significantly below last year. This has been intensified by low demand, with buyers delaying signing contracts in the hope prices will drop further. On top of this, export demand for UK production has decreased as sterling has risen in strength against the euro.

EU steel prices are falling month on month and remain substantially below last year’s prices. Low demand from China is keeping prices down, while there is an oversupply of steel in the EU. Low raw material costs are also adding downward pressure to the value of steel.

UK testliner prices are also declining as a result of a substantial supply in the market, combined with a drop in feedstock recovered paper.