The Environment Agency has now released the first indication of PRN supply for 2017. The figures provide a snapshot of supply but in the absence of this year’s demand figures (due for release May 2017) they only provide one side of the story.
Most materials have reported good supply in line with this year’s expected demand. The Plastic market has dominated early discussions with press stories reporting problems in export markets. An increase in shipping costs along with the introduction on new quality standards for imported material into China has created some concerns in the market and has resulted in early price increases. Initial reporting of Plastic volumes showing a large oversupply however this was identified as a data issue and the figure has been revised down although appears to still be on target.
The Paper, Wood, Recovery and Steel supply has reported increased volumes in excess of expected demand requirements with evidence note prices all stable in Q1. Aluminium is slightly behind its anticipated demand but is expected to grow with little movement on early year prices. In Glass, the remelt side of the market has indicated surplus supply however on the aggregate side supply is running considerably behind. The 2016 compliance years finished with a deficit in aggregate supply but this position was covered by excess in the remelt supply so even in the face of a lower than expected Q1 return little concern has been raised with prices remain stable.
- Ian Andrews