The PRN markets remain volatile as we enter the new calendar year, and in the hope that prices for the affected markets may drop, many producers are leaving their 2015 compliance late.
Paper PRNs are trading in strong volumes and prices have softened. The outlook is that this trend will continue as suppliers bring their stock to market in order to capitalise on the stronger trading prices.
Similar to paper, wood PRNs have also traded in stronger volumes after a period of stagnancy. Prices have softened dramatically from their peak in December, but the outlook for 2016 continues to point to a higher return for suppliers than in previous years, even if it is only a few pounds per tonne.
Much of the drop in pricing for wood and paper PRNs can be attributed to the massive influx of recovery PRNS to the market in December and January. Recovery obligations are expected to be met with more ease in 2016 than they were in 2015.
Plastic PRN prices have continued to fluctuate into the new year, with prices unable to settle at a point where buyers and suppliers are mutually happy. The starting prices for 2016 are the highest seen in years.
Glass PRN forward trades are moving in strong volumes as buyers and suppliers seem content to trade in order for them to set budgets for the year. Despite signs of massive oversupply in the 2015 market, prices have not collapsed as some thought they might.
Steel PRN trading continues in earnest with prices yoyo-ing throughout December and into January. Steel markets are beginning at levels that are higher than we have seen in many years.
With much tonnage available on the market, aluminium is expected to hit 2015 targets. Aluminium PRN prices are, however, not softening in line with the situation.
January is the only month where spot trading for two compliance years can take place. Please ensure, when buying or selling PRNs, that you are operating in the correct market.
If you would like to talk to Clarity Environmental about buying or selling any grade of packaging recovery note (PRN), contact a member of our PRN trading team on 0845 129 7177.