Last week, Mark Terrell, Director at Andusia, took a trip to visit various partners and facilities across Europe. However, the changes in the market didn’t go unnoticed. Mark reflects on his trip and shares the most prominent differences versus last year’s conditions, whilst sharing knowledge on what could lie ahead for the market.
“Following on from my tour of the market last week, I do see a change with RDF prices starting to increase and I think we have now passed the lowest point in the market. Many EfW facilities in Sweden, Germany and Holland have made a conscious effort to increase their stock for this winter- a forward planning one to ensure that energy demand can be met. RDF exports have continued throughout the summer months at record levels, to ensure these stocks of RDF can meet the demand during the winter months. This is due to the waste market stepping up with new RDF production facilities to meet this demand.
Last winter the demand for RDF in Europe was particularly high, due to the global energy crisis, and low volumes of waste in Europe from the drop in economic activity. The biggest importers of RDF (Germany, Holland and Sweden) were all in recession in 2023 and there is an evident direct link between economic activity and waste production. This caused many EfW facilities in Germany, Holland and Sweden to run very low on stock and forced them to drop prices to encourage additional RDF supply.
We are starting to see prices harden again in certain market areas where the supply and demand market is now in equilibrium. However, not all EfW facilities have the luxury of large storage areas for RDF, and a cold winter may put pressure on the European RDF market which is still in a delicate balance.
To exacerbate this further, the recent shutdown of AVR for an anticipated 3 months will put further pressure on the RDF market. We expect prices for RDF across Europe to increase closer to a normal level in 2024, however, this may take some time to filter into the market with most RDF contracts being fixed price and one year in duration.”
If you would like to discuss your waste management solutions or would like any further information on Andusia’s services to help lower the uncertainty of an ever-changing market, get in touch with Andusia today at 01992666257, or email at enquiries@andusia.co.uk.