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Weekly PRN Market Report – Monday 23rd October 2017

PRN Market Overview

The Q3 supply figures have now been released and provide a clearer picture as to how the rest of the year will proceed. The main material of interest, Plastic reported 274,000 tonnes, some 20k ahead of quarterly demand and although not as high as predicted with some 16 companies still to sign off their Q3 return there is time yet for this figure to grow. The positive news is that the evidence note subsidy has done its job in firming up supply during the quarter. Glass aggregate supply continues to struggle reporting a deficit of 26k against demand for the quarter but with a sizeable upturn in Remelt tonnage in Q3, 40k up on Q2, any concerns about supply tightening should be addressed. All other materials performed strongly with Paper showing some increase on the previous quarter. At the time of compiling this report there were over 40 companies still to sign off their Q3 return so one would expect to see some increase in these figures even if only for the final month of the Q3 quarter. The published figures will be reported on the 9th November. It will only be then that we can confirm the position going forward.

This week Plastic prices continued to soften as more supply became evident. Sellers, who up to this point had been happy to hold tonnage, returned to the market seeking trading opportunities. Buyers confident that supply had recovered remained bullish on price and held out for best value forcing a sizeable drop in value. Paper supply remained hard to source with those suppliers holding tonnage able to command a premium. Steel values dropped towards general recycling buying levels in advance of the Q3 return. All other materials continued to trade between previously reported spreads as demand flattened with buyers holding off committing in advance of the Q3 supply return.

231017 PRN Market Overview