SMP hits volume limit – tendering begins

Published 4 April 16

SMP offers into intervention will be subject to a tendering process from 1 April, as the volume limit for product entering at a fixed price has now been reached. Last month, the EU Commission announced it would double the SMP volume ceiling for fixed pricing to 218k tonnes, but so far it has not formally adopted this increased limit.

Therefore, SMP entering intervention from 1 April may receive a lower price than the fixed price of €1,698/tonne (equivalent to around £1,300/tonne). This could put further downward pressure on prices, as this fixed “floor” in the market potentially gives way. The deadline for submission for the first round of tenders is 19 April.