This year we have seen a vast increase in the costs of securing recycling evidence notes for Plastic. Upon examination, the supply figures for this market appear to be robust with a small surplus being created at the end of Q1. This follows on from a strong finish to last year’s supply providing a credit balance of 4% from 2016.
Early reports regarding increasing export costs and the introduction of a new monitoring initiative namely ‘ National Sword’ by the Chinese government has created concern amongst buyers and provided an early demand spike this year. Sellers who have read the perceived concern have decided to hold tonnage and this has created a vacuum in supply and facilitated the increase in costs.
The environment agency are due to release the next set of quarterly supply figures on the 22nd July so any projected shortages will be confirmed shortly however if we record a return similar to Q1 then we would expect to see prices stabilise for the rest of the year.
- Ian Andrews