PRN’s traded in excellent volume in November and the start of December suggesting late buying could become a theme in this year’s market. High PRN prices earlier in the year may have deterred some buyers but it remains a mixed price picture as we enter the penultimate compliance month.
Paper, wood, aluminium and plastic have all fallen on the back of strong supply figures. Paper fell to 65p as sellers dumped surplus volumes into the market. Wood and aluminium fell to £1.10 and £4.95 respectfully. Excellent buying support in plastic at £8 - £8.50 has stabilised the price slide and saw record trading volumes (23,500 tonnes) on t2e in November.
However, despite the ongoing supply concerns, the glass price has shown little deviation from £75 in nine weeks. Steel has been more volatile with prices yo-yoing between £35 and £50 in recent weeks. With strong demand still to be met, compliance in steel and glass is likely to go ‘down to the wire’.
A strong price picture is also beginning to emerge for 2013 PRN, helped by official governmental approval of ongoing packaging targets and the split glass note. 2013 forward trading has opened in paper (£1.20), wood (£1.60), plastic (£15), steel (£25) and recovery (30p).