14 Feb Market Commentary
Energy waste markets are supported by a firming energy complex, led by oil, carbon and inventory falling. Gate Fees may have decreased due to lower logistics costs but the market is still over-supplied in the key markets including Sweden, Netherlands and Germany. Incineration rates have been lower than expected and the over-hang which was evident in the latter half of 2017 has not fully cleared. Demand for imported SRF into Denmark is falling and they prefer to take higher quality material from the German market, which is over-supplied. Overall demand for SRF in Europe is strong and grew nearly 10% year-on-year in 2017 to nearly 0.30 Mt. SRF demand into Poland continues to be strong. In other waste fuel markets, TDF is being assessed again on account of high coal, petcoke and freight prices. TDF is assessed at $42-45/t CIF Turkey, broadly in line with the previous issue. Going forward, Algeria is looking to diversify fuel supplies away from government subsidised natural gas. Solar and alternative fuels for industry are on the agenda.
Global cooperation on harnessing plastic waste and restrictions on imports of recyclables into China is creating tremendous pressure on rising inventories of both materials for waste management companies. Delegated responsibility to deal with these issues is simply being passed around by indecisive governments and their authorities, nobody is taking ownership. More to follow in future issues of IW2EB.