Weekly PRN Market Report – Friday 5th January 2018
PRN Market Overview
With everyone returning to their desks from 10 days of over indulgence it has been interesting to identify were market pressure remains. Plastic again dominated trading activity with widespread media coverage over the festive period doing enough to see 2018 buyers increase their prices. The news for the 2017 prices was mixed with some price volatility being seen towards the end of the week as demand increased. Sellers have become wary of selling, with some holding off due to the risk of missing out on increased prices. While it may appear prudent to do so, sellers should be aware that once demand has been met the likelihood is that prices will soften towards the end of the month unless swapping options for transitional tonnage become available. The other market dominating early year discussions has been Wood with prices continuing to firm up as concerns regarding the increased 2018 targets start to appear. Some have commented that buyers have been active in this market for some time now with reports that some large demand has already been satisfied before the year began. On projections, although 2018 will see demand increase by approximately 160k there should be enough wood to meet material specific demand as long as other markets contribute accordingly to the general recycling pot of supply. Given that the Q1 figure 2017 for Wood was the lowest seen last year, buyers offering better opening prices for 2018 will hopefully provide the market with a stronger quarter and go some way to alleviate concerns, albeit in the short term. Price stability remained across most other markets with Aluminium the only market seeing an increase on 2017 prices.
Thank you once again for your support last year. Looking forward to seeing what challenges lay ahead for 2018.