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PRN December Monthly Update

The fourth quarter of 2015 will be remembered for a long time in the Packaging Compliance industry – it is at present the most volatile it has been in recent memory. Market perceptions are seeing certain grades yo-yo in price by as much as £40 (Plastic in particular), and we at Clarity are set to complete a record-breaking year for PRN trading as market volatility sees buyers and suppliers consider their options looking for the best deal.

The data points to a good chance of successful compliance for Aluminium. Prices are softening and look to continue on the same track. Clarity has traded strongly on both the spot and forward markets.

Buyers and suppliers have found a price point which is agreeable to both sides and trading has renewed in earnest following a brief tightness in the market at Q3 data release. Clarity has experienced strong trading on both spot and forward markets, covering the whole of 2016, as buyers look to set their budgets in uncertain times.

Plastic pricing has fluctuated dramatically since the Q3 data release, and compliance is still uncertain. We have observed buyers holding back when they feel the price is too high, forcing suppliers to lower their expectations. Vice-versa, once prices are considered too low by suppliers they will hold back themselves and encourage higher offers from buyers. Clarity has traded strongly on the spot market.

The initial market tightness that both Q3 data, and the ongoing global steel market conditions caused, has subsided, so prices have almost dropped back to the pre-data levels, meaning compliance is expected to be fairly comfortable. Clarity has traded moderately in the spot market.

Wood has spent much of the time since our last update being unavailable for trade. Recently trades have started to move with some buyers jumping at the chance to clear their obligations at prices 25 times higher than they have been in recent years.

Buyers are still having to buy paper to cover their recovery obligations as there is so little available. No recovery has traded since our last update.

Glass is currently in the unfamiliar position of being the most stable of the grades, with prices softening slowly to a 2015 low. Clarity has traded strongly in glass during Q4.

If you have any questions about the data or would like to talk to Clarity about buying or selling any grade of packaging recovery note (PRN), contact a member of our team on 0845 129 7177.

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