The Environment Agency has published the packaging obligated data, providing an indication of this year’s demand for PRNs.
Figures suggest the glass market will remain tight and Chris Taylor, Clarity Environmental PRN trader, said it could go two ways:
“There are no real surprises in this year’s producer obligation data. There has been a drop overall, possibly because last year’s jump in price has left producers keen to make sure that their data calculations are right on the money this year. Understandably, no one wants to pay any more than they have to comply.
“Compared to last year, the glass obligation has dropped. There is, however, still a fairly large shortfall in recycled tonnage from Q1 and overall we are 60,000T behind where we need to be. Glass other recycling will also need to pull its weight if we are to cover the split for 2013.”
“The glass obligation has dropped but there is still a fairly large shortfall in recycled tonnage from Q1. Overall we are 60,000T behind where we need to be.
“The UK is behind on quarterly targets so in theory the price should rise, but on the other hand, the overall target is much less than was hit last year so we should meet it comfortably with prices staying steady or in some cases falling. It will be interesting to see which of the buyers and suppliers buckles first.”
Commenting on the other grades, Chris added: “Plastic targets have risen substantially and we are hear that as a result of the Chinese green fence policy, Q2 export data will suffer dramatically. The prices offered by suppliers have already begun to grow since the release of the producer obligation data so it could be a long year for plastic buyers.
“Steel, however, is looking very comfortable and any high prices commanded should fall as trades are pushed through. Paper, wood, aluminium, recovery and the general pot are also comfortable and we should continue to see administrative prices for the cheaper grades.”
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