Data released by the Environment Agency to last month’s Advisory Committee on Packaging (ACP) meeting appears to show that the PRN system is in line to meet 2019 packaging targets for plastic.
The news comes amid concerns by some in the sector that there are insufficient PRNs around to meet targets and the prices for plastic, and some other PRNs too, are too high.
And, the data provided by the Environment Agency to the meeting shows that for Plastic for the year to June 14th, is running at a higher level this year than last.
The data suggests that it would appear likely that the rate of recycling in Q2 has rose in relation to the increased plastic PRN price
This was replicated in other markets such as paper and wood, although the EfW, Glass Remelt, Aluminium and Steel markets are all down from the same period as last year.
For the plastics market, it would appear likely from the data that the rate of recycling in Q2 has rose in relation to the increased plastic PRN price, which had even neared the £400 mark in June.
The total plastic recycling for Q2 2018 data was 284,277 tonnes and it is thought by many in the industry that it would not therefore be unreasonable to consider that Q2 2019 is likely to exceed 300,00 tonnes when the final Q2 figures are released next month.
If this was the case, the potential shortfall caused by a low Q1 level of plastic recycling would arguably have been corrected and the UK would have achieved approximately 54% of the current net 2019 plastic obligation.
The data provided to the ACP (click to enlarge)
The data was provided by the Environment Agency on request from the ACP following the meeting on the 19th June in relation to recent concerns over PRN price increases.
When the higher value of PRNs is taken into account, and the numbers issued, it would appear that that operators are obtaining the financial benefit of PRNs more quickly than last year. Some in the sector think that this would support the contention that the high PRN value is being used to acquire more material more rapidly than may have been seen previously.
The figures are thought by some in the industry to support the position that the current excessively high prices of plastic PRNs are not justified but are more a result of perception and panic buying.
Speaking with letsrecycle.com after the release of the data, Phil Conran, chair of the ACP, said: “Until the quarterly data is released on 22 July, we can only speculate on the levels of recycling in Q2.”
Mr Conran added: “However, the comparison provided by the EA certainly helps to provide confidence that there should be sufficient growth to bring us back on track to meet the 2019 targets and we hope that stakeholders will take note and react accordingly.”
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Source: letsrecycle.com Packaging
