With the last set of monthly supply figures released this week for the 2017 compliance year we now have some supply evidence to review last year’s performance. These figures are unaudited and are likely to change once they are published but provide some indication on last year’s performance.
Viewing entries in
Next year we are due to see recovery target increases across all materials. While in most materials this will lead to a small incremental increase there are some concerns regarding the Wood target increase which is due to rise from 22% to 38%. This increase will result in obligations growing from 244,000 tonnes to 417,000 tonnes, the largest increase since Wood targets were introduced.
This week we have seen the release of the monthly supply figures covering the period up to the 10th August. These figures showed that during the last month, 105k of supply had been added taking the annual total supply to 613k. When compared against annual demand (1,010k) this would indicate that the supply is in balance with demand but prices have continued to hold firm in the face of concerns exporting material to China.
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 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.
On the 15th May the Environment Agency released the first set of packaging handled figures for 2017. These figures allow us to review any increases in obligations and help determine the effect of this year’s target increases.
The Environment Agency has now released the first indication of PRN supply for 2017.