Brexit causing buyers to shy away from the waste market
According to the May Issue of the International W2E Market Bulletin, the continuing Brexit concerns and the impact it might have on currency markets, are keeping buyers away from the market.
Latest commentary from the market bulletin reports that, prices for RDF/SRF are mixed across the EU-zone, with some suppliers seeing a change in sentiment from end-users in Germany and the Netherlands.
Prices over the past three-to-four weeks have fluctuated in favour of suppliers, but fees are expected to swing in favour of end-users in the short-term.
June enquiries are expected to be very slow for suppliers operating in the EU-zone. In Scandinavia, demand from the heating market is understood to be going into a seasonal slow-down, but stocks were above normal going into winter (see W2E issue 7) and there could be room to take extra cargoes moving into the European summer.
In SRF markets, the recent increase in solid carbon fuel prices, especially petroleum coke for cement producers, can help support overall price sentiment in the market. Used tyres are also looking competitive in the Mediterranean market against solid fuels.
The spring and summer season is a period of higher industrial consumption as industrial activity picks up, especially cement output. But for now fees are under pressure in the short-term. Longer-term, suppliers are looking to diversify their supply base and tap into growing global demand for SRF from industrials. Cement output across the EU-zone is mixed. Spain recently recorded a 3% y-o-y, decrease for April at 945kt.
For more insight into the International W2E Market, download this Issue of the W2E Market Bulletin here.