After a volatile year for the PRN markets in 2015, it looks like it could be a more positive year ahead for producers, assisted by the news on packaging targets announced in the Spring Budget. Global markets do however remain fragile and things could change in an instant.
Plastic PRNs have traded in strong volumes this month and with a continued softening of prices. The starting prices for 2016 were the highest we had seen in years, with global pressures such as falling oil prices creating uncertainty within the market. But after exceeding its target in 2015, and the announcement in the Budget that the current target of 52% for plastic packaging recycling for 2016 will be reduced to 49%, prices have continued to ease.
Glass PRN prices have remained stable over the last 6 months, and are trading in strong volumes. The glass markets will also be assisted by the news from the Budget that the existing target of 77% will be maintained until 2017.
The price of steel PRNs has also softened and looks likely to fall even further, with trading at moderate volumes.
The supply of recovery PRNs has increased compared to the levels seen 12 months ago, which is helping to alleviate paper and wood PRN pricing. Both have experienced a softening, with prices easing from the heights experienced in December and January. Paper PRNs have continued to trade in strong volumes this month and wood PRNs have traded in moderate volumes.
Clarity has been buying and selling packaging recovery notes (PRNs) since our business started in 2002. We are now one of the largest and most experienced open market traders of PRNs. To talk to our team about buying or selling any grade of packaging recovery note (PRN), contact us on 0845 129 7177.