This week we saw the release of the monthly figures covering the last month of 2017. While we can only estimate off these figures they do provide some indication of a positive return for the problematic 2017 materials. As outlined in the table below Aggregate glass continue its struggle being saved only by the surplus created in Remelt. It should however be noted that it has had to use some of the 2017 carry in to see it over the line.
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In the last six months we have seen industry news dominated by the potential problems which may arise due to the banning of some recovered material imports into mainland China. For all the concerns voiced it is important to note that one of the main gauges of reprocessing activity has shown little downturn in volume. The volume of tonnage generated in Plastic via the packaging recovery note system this year has seen little effect on reducing supply.
The Scottish government has recently announced that it aiming to create a deposit return for drinks containers which will include Glass, Plastic and Metal. While this move is being applauded by most in the environmental sector dissenting voices can be heard from those with previous experience most notably AG Barr Ltd who for over 140 years ran such a system.
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.
With all agency published data to hand showing that Plastic supply in reasonable good health it has been concerning to see Plastic evidence note values increasing considerably in the last few months. At this stage of the year the market is currently showing a surplus supply of around 5%.
The recently released set of figures outlining the potential demand for this year indicated levels similar to last year. While this would appear to indicate no growth in demand once new targets are applied it should be noted that there are still some 400 producers yet to register.
Figures indicate recycling volumes grew confidently in 2016
The recently released recycling figures from 2016 have confirmed what many had anticipated given the stable PRN pricing in 2016, that recycling volumes across all materials grew steadily.
It has been a relatively straight forward year with reported volumes at good levels across all materials. The latest supply figures show that barring a complete collapse of Glass supply, targets should be met with relative ease and we should head into 2017 with a considerable amount of carry in tonnage. After the pressures seen in last year’s market this has provided some relief. It should be pointed out that but for the undersupply positions towards the end of 2015 and its effect on Q4 2015 pricing things could have been very different.