Market Report

Market Material Analysis

Paper

A strong performance this quarter was characterised by the prominence of trading in the forward markets rather than the Spot market. This has been mostly due to the trading fee rebate structure in place in the forward markets. During the quarter we saw the price initially increase before the first sub £1.00 trade was recorded in the December Forward market. The initial increase was due to an up turn in demand as buyers became concerned about supply, driven by the falling of the material value.

Plastic

The Plastic price remained relatively stable this quarter with a softening only occurring at the end of the period when values dipped below £5.00. With the addition of an extra 55,000 tonnes of demand this year this market has remained finely balanced which has assisted in keeping the price firm. Current prices represent an 86% increase in value on the corresponding period last year. Glass – Glass prices initially fell at the start of the period before rebounding towards the end. This has been largely due to a tightening of available supply against strong demand. The supply figures have shown that the market is carrying an excess of 50,000 tonnes this year but with the transitional period approaching, buyers concerned about December tonnage being carried forward have taken the decision to close out 2011 positions early.

Steel

A strong supply position has resulted in the price continuing to drift down this quarter. Sellers with volume tonnage to transact have taken the decision to sell at lower prices in order to avoid writing tonnage back at the end of the compliance year.

Wood

Although the supply of Wood PRN’s continues to contract, there are excesses in other markets to meet the outstanding General demand. Prices in this market continue to achieve a premium over Paper albeit for smaller purchasing requirements.

Aluminium

With a strong supply and limited demand the price continued to drift down during the quarter.This market is now trading at an average value which represents 1/10th of the value from the corresponding period in 2010. The Q3 supply figures released at the end of the quarter showed that there is little hope of the price recovering before the turn of the year.

Recovery

Trading in this market continues to trade at historically low levels. Sellers achieved better value by trading through the Spot market although these trades were for small amounts.Q3 supply showed that the market had almost made its target by the end of the quarter.The only saving grace for sellers in this market is that the price cannot feasibly get any lower.