PRN Market Report – Wk End : Friday 1st June 2018
PRN Market Overview
After the long bank holiday weekend traders returned to their desks with renewed focus on prn procurement. This week news stories regarding the implementation of US import tariffs for Steel (25%) and Aluminium (10%) resulted in some upward pressure on prices. In recent weeks, due to the increasing Paper price, Steel tonnage has been targeted for general recycling demand however as pressure continues to build it is thought that focus will revert back to the Paper market for this buying. Paper and Plastic exporters have been voicing concerns about the new end markets most notably Malaysia and Vietnam. In Malaysia, a delay in increasing import licence volumes due to the change in government has led some to predict a tightening supply in Q2. Stories regarding the backlog of material building up at Vietnamese ports has also increased concerns and has resulted in prices in Plastic rebounding after the softening price trend of the last few weeks.
As we drift towards the midpoint of the year we head into unchartered territory. In my 15 years’ experience working in the market I do not remember I time when all materials collectively have come under some supply pressure. We await the release of the next set of monthly figures in the hope that they will present some positive supply news in the face of what appears to be a challenging year.