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• Gold price edges lower to near $3,320 in Monday’s early Asian session. 
• Strong US June employment data weighs on the Gold as Fed rate cut odds decline. 
• Middle East geopolitical risks and renewed trade tensions might cap the downside for the Gold price. 

The Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday. The precious metal edges lower as the US June Nonfarm Payrolls (NFP) report altered the US Federal Reserve (Fed) policy expectations. Traders brace for the Federal Open Market Committee (FOMC) Minutes later on Wednesday for fresh impetus. 

The US NFP came in stronger than expected, rising by 147,000 jobs in June from 144,000 in May (revised from 139,000). Additionally, the Unemployment Rate held steady at 4.1% in June. These reports indicated continued labor market resilience, reducing the possibility of the Fed’s near-term monetary accommodation. This, in turn, underpins the US Dollar (USD) and exerts some selling pressure on the non-yielding assets like Gold.

On the other hand, the potential downside of yellow metal might be limited amid the renewed geopolitical tensions in the Middle East. Israel stated late Sunday that the country’s military had attacked Houthi targets at three ports and a power plant in Yemen. Defence Minister Israel Katz confirmed the attack, saying they were carried out due to repeated attacks by the Iranian-backed rebel group on Israel. Any sign of escalation could boost the safe-haven flows, benefiting the gold price. 

Gold traders will closely monitor the developments surrounding tariff policies. CBBC reported on Sunday that US Treasury Secretary Scott Bessent said that US President Donald Trump will send letters to some trading partners saying tariffs will return to April 2 levels on August 1 if there is no progress on the trade agreement. Renewed trade tensions might lift the Gold price in the near term. 

 

Oil extended declines after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.

Brent slid as much as 1.6% toward $67 a barrel after falling 0.7% on Friday, and West Texas Intermediate was near $66. The group led by Saudi Arabia decided on Saturday to increase supply by 548,000 barrels a day, putting OPEC+ on track to unwind its most recent output cuts a year earlier than planned.

More than a year after implementing the first phase of the single-use plastics ban, Hong Kong restaurateurs are lamenting the lack of suitable alternative materials. As the city’s problem with plastic waste persists, the government can learn from successful international case studies and accelerate the adoption of proper plastic alternatives to achieve a plastic-free future.

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The implementation of a two-phase ban on single-use plastics in Hong Kong has taken a hit, as the city struggles to find alternatives.

Last month, Secretary for the Environment and Ecology Tse Chin-wan said on Commercial Radio that the government is looking to launch a trial campaign with selected restaurants within two months to test alternative products and provide feedback to suppliers for improvement.
“We will implement the second phase of the legislation only when the alternative product technology is more mature,” Tse told iCable in June. “It is difficult to require everyone to use their own utensils when buying take-away food, we need to find suitable alternatives before we continue with phase two,” he added.

Two-Phase Ban

The Legislative Council passed the Product Eco-responsibility (Amendment) Bill for regulating disposable plastic tableware and other plastic products in October 2023. 

The first phase prohibits the sale or supply of styrofoam tableware, disposable plastic tableware such as straws, stirrers, cutlery, and plates, as well as the supply of cups, cup lids, food containers, and food container lids to dine-in and take-out customers in catering establishments. In the second phase, the supply and sale of all of the above plastic tableware in Hong Kong will be forbidden. 

At the same time, hotels and guesthouses are banned from providing free disposable toiletries and grooming products (including rubber-handled toothbrushes, toothpaste, shower caps, razors, nail files, combs, and any liquid products stored in disposable plastic containers), as well as free disposable water in plastic bottles in rooms. The second phase will further prohibit the sale and free supply of multipack rings, table cloths, and plastic stemmed dental floss, and the distribution of free earplugs.

The manufacturing, supply and sale of oxidizable biodegradable plastic products – plastics that cannot be completely decomposed – have also been prohibited since the first phase was implemented in April 2024.

Businesses failing to comply with the regulation will be issued a notice and fined $2,000 if they have not taken action within 21 days from the notice. Repeated offences may result in fines of up to HK$100,000. 

More than 19% of the 3.97 million tonnes of municipal solid waste disposed of at Hong Kong’s landfills in 2023 was plastic waste, a 10.5% decrease from the year prior, according to Environmental Protection Department (EPD) figures. Meanwhile, the quantity of plastic recycled locally rose from 119,900 tonnes in 2022 to 126,600 tonnes in 2023 – but still represented only 6.5% of the total waste.

Other Initiatives

To counter the rising plastic problem in the city, the EPD in 2021 also rolled out a Reverse Vending Machine pilot scheme for collecting plastic beverage containers, which was subsequently expanded to 120 machines scattered across all 18 Hong Kong districts. The machines offer a HK$0.10 rebate for each plastic beverage container returned. Customers need to register an account, and can return a maximum of 30 containers per day. 

“The machine is effective and does not require a huge monetary incentive. The refund of 10 cents for each plastic bottle is already attractive enough for the public to be willing to recycle,” Tse said in February. 

As of last month, the scheme had collected 179 million containers, which are sent to local recyclers, saving more than 6.7 million kilograms of carbon emission, according to EPD data.

However, some critics have argued that the incentive is too low. According to Robert Kelman, Director at Reloop Pacific, an international non-profit that tackles packaging waste throughout the Pacific, the HK$0.10 rebate – the lowest in the world for such a program – is “virtually meaningless” to most Hong Kong consumers. He further argued that the low number of plastic bottles received at the recycling centres is disincentivizing recycling companies to invest in the scheme. 

For Kelman, a scheme cannot succeed unless it is both convenient to consumers and offers an adequate refund value.

“I’m not sure which studies Tse was referring to when he said the rebate of 10 HK cents (1.3 US cents) was ‘attractive enough’ after lawmakers raised doubts about the effectiveness of such a rebate,” said Edwin Lau Che-feng, Executive Director of local environmental organization Green Earth. “Why not use a deposit approach in light of successful cases around the world, some of which have achieved a recovery rate of more than 90 per cent?” 

Lau was referring to so-called Deposit Refund Schemes (DRSs), which apply an initial deposit, or “tax”, on the purchase, which is then returned to the consumer upon proper recycling. 

More than 40 countries around the world have implemented DRSs. Slovakia, for example, requires consumers to pay a deposit of €0.15 (HK$1.37) for packaged beverages. The scheme, launched in 2022, resulted in a recovery rate of 70% in the first year. Similarly, Germany imposes deposits on glass and plastic beverage containers ranging between €0.08 and €0.25 (HK$0.73-2.28) and in 2022, it was able to achieve a 98.4% return rate. 

“The authorities should realise that had they taken the deposit approach, coupled with a higher deposit value than the current rebate of 10 HK cents, producers, with retailers’ support, would have no trouble reaching a recovery rate higher than the suggested initial targets of 10 per cent for drink cartons and 30 per cent for plastic bottles,” said Lau.

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Plastic-Free Matters

Plastics take 400 years to decompose – and even then, they do not fully disappear but rather break down into tiny particles known as  microplastics. According to Greenpeace East Asia, 97% of Hong Kong’s riverine waste is plastic, of which more than 70% is food, logistics and beverage packaging as well as disposable tableware. 

In 2021, Greenpeace found microplastics in Hong Kong’s countryside streams for the first time, and last year, it detected microplastics in the feces of countryside mammals.

“Country streams are at the front end of the entire water cycle. The fact that they are contaminated by microplastics is a major warning sign that plastic pollution in urban rivers and oceans may be even more serious,” said Tam Wing-lam, the Greenpeace’s Project Director. She warned that microplastics can contaminate the water system, threatening public health.

Christelle Not, Senior Lecturer of Department of Earth Sciences in University of Hong Kong, said Greenpeace’s findings demonstrated that wildlife can still take up microplastics from the environment even when they are far away from urban areas and human activities.

Microplastics carry harmful additives and toxins that can damage the nervous, immune and endocrine systems when they accumulate in the food chain and enter the human body. Exposure to plastics and microplastics is linked to chronic diseases such as diabetes, developmental disorder, cancers, birth defects, and endocrine disruption.

Plastic is also detrimental to animals. Sea animals like turtles often mistake plastic for food, but their bodies are unable to digest it. They can become entangled, leading to injuries and even death. 

A research team at the Hong Kong University of Science and Technology (HKUST) found that micro beads, manufactured micro plastics used in products ranging from facial scrubs to toothpastes, ending up in the digestive tracts of fish and other marine creatures can affect their growth and development. 
“Despite all the adverse impacts these minute plastic pollutants have on the marine ecosystems, they are still being used in many personal care products around the world – including here in Hong Kong,” said Karen Chan, Assistant Professor from the Division of Life Science at HKUST and study lead.

Finding Alternatives

The most common plastic substitutes in Hong Kong include paper, bamboo, wood, and plant-based fibers such as wood pulp, grass pulp, and bagasse. Among these, paper and bagasse are the most widely used in both tableware and daily accessories due to their eco-friendliness and practicality. 

While considered more eco-friendly than plastic, paper packaging manufacturing is still associated with carbon dioxide emissions and extensive water usage. According to local environmental NGO Friends of the Earth, producing one tonne of paper generates approximately 950 kilograms of carbon dioxide and requires 2,700 litres of water. Still, contrary to plastic, paper is a natural, biological, and in most cases renewable material, making it a better alternative.  

The Hong Kong Consumer Council also reported in 2022 that perfluorinated and polyfluoroalkyl substances (PFAS) were detected in 23 samples of bagasse-based vegetable fibre tableware, with some paper drinking straws exceeding the European Union’s safe limits. 

PFAS – better known as forever chemicals – are synthetic chemicals used in the manufacture of heat-, oil-, and water-resistant coatings for products like nonstick cookware or waterproof clothes. They are associated with increased risk of certain cancers, including prostate, kidney, and testicular cancers, and found to reduce the body’s immune system’s ability to fight off infections.

In 2023, researchers from the University of Antwerp in Belgium who examined 39 different types of straws (paper, glass, bamboo, stainless steel, plastic) discovered that PFAS was present in 90% of paper straws and 80% of bamboo straws. 75% of all tested plastic straws also contained PFAS.

The cost of non-plastic tableware is also one of the factors that restaurants need to take into account. According to the Environmental Protection Department, the price difference between the lowest-priced disposable plastic product option and its lowest-priced alternative is still relatively large, ranging from HK$0.12 to HK$0.68.

However, costs are expected to decrease as demand, and consequently production, ramp up, said Simon Wong Ka-wo, President of the Hong Kong Federation of Restaurants and Related Trades. 

Some restaurant owners or customers were also unhappy about the quality of alternative options. “If you’re walking home with your takeaway order in this box, that’d be fine. But if you have to drive, then that wouldn’t work,” the owner of a Shanghainese restaurant, who is surnamed Lee, told Hong Kong Free Press last April. 

“It literally takes two sips [before] the [paper] straw starts getting soggy, and the forks don’t even work!” said one of his customers.

At the end of the day, neither recycling nor switching to biodegradable tableware is the best solution, environmentalists argue. 

“Instead of placing our hopes in recycling and the use of degradable plastics, we should seek to avoid, reduce at source and reuse,” said Lau. “We must ditch our addiction to single-use plastics, slash plastic production at source and develop genuine plastic-free and harmless alternatives.” 

Featured image: Wikimedia Commons.