PRN Market Report – Wk. End : Friday 29th June 2018
PRN Market Overview
Once again this week we have seen further upward price pressure on materials which are being targeted for General Recycling obligations. In both Paper and Steel, prices increased by £2.00 per tonne with limited supply and smaller buying obligations contributing to the uplift in value. Glass Aggregate prices started to increase closing the gap on the current Remelt note price. Aggregate volumes remain weak with smaller buyers happy to secure Remelt notes as an alternative. In Wood further increases were recorded as limited availability continued to effect prices. Aluminium prices started to creep up recording its highest value for the year despite reported supply being reasonably comfortable.
This week the Wood Recyclers Association (WRA) released a report on the state of material supply in 2017. The stand out conclusion was that exported material volumes had dropped, with around 300,000 tonnes remaining in the UK when compared to 2016. It also highlighted that 1.7 million tonnes had been recycled into animal bedding and panel board in 2017. At these levels one would expect to see an uplift in evidence note supply however continuing legal issues regarding the storage of material may inadvertently be pushing it to landfill. With Paper and Steel prices continuing to creep up, there are concerns that Glass volumes will soon be targeted within the material mix jostling to meet General Recycling demand. With monthly figures due to be released on the 10th July, quickly followed by the second set of published figures on the 23rd July, buyers will be hoping for more positive news. The principle of the PRN system is that increased note values should result in increased supply, however with little to no growth in supply at current price levels those who question the system may finally have the evidence that it is not working as it is designed to.