The change sees the value for cans collected at the nationwide network fall from its previous level of £95 per tonne, and a high of £235 per tonne which it held between May and July 2008.
This reduction, from £95 per tonne, is due primarily to the global economic slow-down and the resulting decline in orders for new steel products in the UK
Corus statement
In a statement announcing the fall, Corus Steel Packaging Recycling said: “This reduction, from £95 per tonne, is due primarily to the global economic slow-down and the resulting decline in orders for new steel products in the UK, particularly in the automotive and construction sectors.
“A knock-on effect of this reduced demand for new steel products is a reduction in demand for all scrap steel to be used in the steel production process, resulting in a drop in demand – and value – of steel packaging delivered to CanRoute centres,” it added.
Corus' announcement is likely to be seen as further proof of the effect of the economic slowdown on prices in both the metals recycling sector and the recycling industry as a whole.
Both ferrous and non-ferrous metals prices have declined dramatically from the high levels they reached between April and July 2008.
Aluminium
Earlier this week, aluminium can recycling firm Novelis announced that it was reducing the price it paid per tonne for used beverage cans (UBC) delivered to its network of regional processors.
And, uncertainty over the economic situation has also led to price falls in the recovered paper sector, with prices weakening and some export orders being cancelled (see letsrecycle.com story).
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