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PRN Weekly Market Report – Friday 11th May 2018

Packaging Recovery Notes Market Overview

Ongoing concerns around this year’s Paper supply has resulted in this price increasing again. The April monthly return, as listed in table 3 below, indicated that supply was continuing to tighten and once again this created upward pressure with independent buyers eager to secure tonnage. The Wood supply figure, which was also down on the same period last year, indicated that even a record high price of £25.00 has done little to increase supply to this market. This confirms that there is still some way to go before the market can compete with the biomass sector for the packaging grade material. Concerns have been raised with the BEIS Energy minister, Claire Perry, by local Cowie MP Stephen Kerr due to one of the companies located in his area, Norbord Ltd, reporting issues in securing material for its processes. The minister has agreed to look into the matter with some urgency although at this stage in the compliance year it is hard to see what changes could be brought in to ease supply pressure in 2018.

Most other materials had a reasonably stable week with only Glass Aggregate notes reporting an increase in value due to the currently disparity between demand and availability in this market. It is no surprise that the Aggregate note value is starting to increase and it is expected to eventually match the Remelt note value if we see no improvement in reported supply. Good news for Plastic buyers with the recent monthly return reporting substantial growth on the same period last year. The strength of this year’s carry in combined with the positive monthly supply news has resulted in prices softening this week, down £1.00 on last weeks reported price.  The 2018 demand figures along with the company registration lists are due to be released this week on the Tuesday 15th and while this gives us the first indication of this year’s demand, readers are reminded that these figures are likely to change when late registrations are included.

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