The most recent set of recycling figures for this year (Q2) raise few concerns about this year’s supply. Contrary to the opinion of many sellers in the market the Plastic evidence note supply has come in on target. This contradicts the early market press reporting regarding export problems which have resulted in Plastic prices increasing considerably this year.
In the short term, and certainly for this year, the figures should result in evidence note costs softening. Looking further ahead, the recent confirmation that China is to ban the importing of some packaging grades from the end of 2017, namely Plastic and Mixed Paper grades means that going forward the market faces some new challenges.
All other materials with the exception of Glass Aggregate notes remain in healthy supply. In Glass, a downturn in Aggregate note supply can be offset against a growth in the Remelt note supply so although concerning at first glance there appears to be little concern that targets not be met this year.
- Ian Andrews