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PRN Market Report – Wk. End : Friday 6th July 2018

PRN Market Overview

In the past week,  prices for most evidence notes increased in value. Plastic and Recovery notes held at their previously reported price levels. In Steel, the tightening supply in Paper resulted in buyers reverting to secure Steel tonnage for General Recycling obligations. The increased General Recycling demand also had an impact on the Glass values. As the week closed, both markets where jostling to offer best value resulting in price increases for both Spot and Forward contracts. Wood note values continued to increase with demand outstripping supply. Volume buyers are eager to secure tonnage and are happy to secure at current market levels and above; however, locating supply has become problematic. Aluminium values recorded a small increase on the previous period.

Yet again this week we have seen further upward pressure on prices. Wood buyers will no doubt be hoping for a good supply figure to be reported this month given the strength of this year’s pricing. If we do not see supply increase then there will be concerns regarding the further target increase due to be introduced in 2019. Next year it is expected Wood demand will go up by an additional 80,000 tonnes once the new target is applied. Given that we have struggled to meet 2018 demand even at these record prices, one would expect some discussion surrounding a revision of the 2019 target. On the 10th of this month (Tuesday) we are due to see the latest unaudited monthly supply summary which will be followed by the publication of the Q2 supply figures (23/07/2018).  If the PRN system is to perform as it is designed to, then the increased prices recorded for the first half of this year should result in a boost in supply. If we fail to see any improvement on the Q1 supply report, one would expect those stakeholders who have long questioned the system will have plenty of evidence that it is no longer fit for purpose.