PRN Market Report – Wk. End : Friday 31st August 2018
After two weeks away from the office I was surprised to see further increases in Plastic notes values. Prices increased up to £70.00 per tonne as stories emanated around further import restrictions to oversubscribed far east markets. Paper, Steel and Glass prices reported small increases as buyers sought out best value for their general recycling requirements, tightening supply in each material. Wood prices have stabilised, albeit at record price levels, and Aluminium volumes reported a small lift due to increased demand.
Prices in Plastic rose as exporters reported concerns about the viability of new end markets to take tonnage, which would have previously been destined for the Chinese market. As volumes destined for these markets have grown, they have become backed up with material leading to internal logistical problems. This, coupled with newly introduced export restrictions in these end markets, has increased concerns surrounding the viability of said markets going forward; this has resulted in the latest price increases.
The Wood evidence note price has remained stable with reports that at current price levels it is providing strong competition for material previously destined for the bio mass market. A review of the latest published monthly return figures highlights that the average monthly return in Q2 has growth of 10k on the previous quarter. This provides the strongest indication yet that the increased note values are having the desired effect of increasing supply. At current levels the market will satisfy this year’s requirement, although with little carry out and increased targets due to result in demand going up by a further 70k next year, further price increases cannot be ruled out.