The introduction of monthly reports by the Environment Agency has provided the market with early indicators of supply and has helped to alleviate early upward price pressure across most materials.
This year’s first published Q1 supply report has confirmed that most materials are in line with early years’ predictions. The Plastic market has been the main focus of most stakeholders concerns with press stories indicating problems in the export markets. China, who are the largest buyer of waste material from the UK have introduced a new quality initiative for waste material called ‘National Sword’. Those familiar with the Chinese market will remember the ‘Green Fence’ protocol which was introduced some years ago and its effect on UK PRN prices. Thankfully at this stage we are yet to see any effect on reported volumes however there remains a sense of unease going forward this year.
Plastic initially reported a very healthy excess supply however further examinations by the agency identified some reporting errors and the number was revised downwards. Although lower than previously thought the Plastic market has come in on target but prices have remained high reflecting the concerns as outlined.
- Ian Andrews
The Glass aggregate figure is reported at 25% below the anticipated target but with some excess being created on the Remelt side of the market little concern has been raised. Aluminium will require some growth in year as the Q1 figure is running slightly behind its demand requirement.
All other materials including Paper, Wood, Steel and Recovery are all showing healthy positions going forward.