Q3 2016 Supply Figures

With the release of the Q3 supply figures providing the last indicator of supply this year below we look at the projected outlook for the end of the year. Total supply was in line with the previous quarters and with only a small tightness in Glass Aggregate supply providing concern.

Paper

Although down on Q1 the Paper PRN supply continues to be generated at record levels. A change in claim rate protocols for mixed paper this year has resulted in considerable growth leading most to predict a relatively trouble free end to the year.

Plastic

Another strong quarter for Plastic, although surprising that no growth has been reported in Q3 export numbers due to the weaker pound and its effect on export streams. The market can afford a 20% drop in Q4 on the 2016 quarterly supply average and still meet target given the strength of this year’s transitional tonnage carry in.

Aluminium

This market reported a small decrease in supply this quarter. Given the strength of supply in previous quarters little concern is being raised.  The change in claim protocols over recent years has seen supply grow considerably with many now questioning whether recovery targets need to increase.

Steel

Once again Steel produced a very strong quarter supply. Exports have dropped during the quarter but domestic reprocessing levels have increased which has eased market concerns. The contraction of domestic

Wood

Having already created enough supply to meet its material specific demand this year Wood has continued to perform well with a good surplus being created for the general recycling pot.

EFW (Recovery)

Supply has recovered this year with record returns being reported once again. At this point the market has created enough supply to meet demand this year. It is likely that all of December’s volume will be allocated forward providing a relatively comfortable start to 2017.

Glass

When taken combined, the position of glass looks relatively comfortable however the market has continued to see a reduction in the aggregate glass supply. This was always to be expected and is a symptom of the higher glass value years and the investment that was made in the glass sorting facilities during that period of time. Subsequently there has been an increase in the Glass Remelt volumes and this helped keep pressure out of the market.

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