The most recent set of monthly supply figures show that the market is on track to meet the plastic obligation this year resulting in many buyers questioning the validity of current PRN prices. In the face of the positive supply news from Q2 and with the latest set of monthly figures showing a market in balance many had expected to see some downturn in value. It would be foolhardy to dismiss the concerns of exporters regarding the movement of material to China and the challenges it will bring in 2018, but as it stands this year’s supply is holding up.
Those dissenting voices rightly querying the current prices will no doubt be met with ‘if the price wasn’t as high this year the supply wouldn’t be created’ and though there is some truth in that statement, this year has been unique in that early buyers have taken into account future years supply when making purchasing decisions for 2017.
- Ian Andrews