The Environment Agency have now released the second set of quarterly supply figures for the year and the early indications are that all materials remain in good supply. It was anticipated that the introduction of new export protocols in China would result in a tightening of Plastic PRN supply but this has not materialised with supply coming in on target. This further confirms the position that market sentiment, as opposed to hard supply facts, has facilitated the higher costs currently being requested for the evidence notes.
One would expect the latest figures will result in a reduction in current prices. The better that expected Plastic news came with a sting in the tail with the Chinese government confirming the introduction of an outright ban on some packaging materials from the end of this year making compliance in future years questionable certainly at the lower costs UK producers have become accustom to.
All other materials performed well with the exception of Glass Aggregate notes which reported a deficit on projected demand levels however given a small surplus being generated on the Remelt side of the market this will raise little concern.
- Ian Andrews