Provisional monthly packaging data has shown “promising” signs towards the UK meeting its 2020 obligations, but the full impact of the lockdown on markets won’t be seen until finalised Q2 figures are published later this month.
As outlined in the table below, there have been increases in the monthly data posted between June and July this year for glass aggregate, aluminium, plastic and wood.
Glass remelt, steel and paper have all seen decreases compared with the same month last year.
However, the optional monthly submissions on the National Packaging Waste Database shows wood, paper, steel and glass remelt are behind the same date as last year, but this can only be taken as a rough guide as monthly submissions are optional.
The figures also don’t include any carry-over data from last year.
Responses from packaging compliance schemes were varied. Valpak noted that economic uncertainty is a shadow on the markets while Clarity Environmental aired concerns about the impact of lower value PRNs for plastics. Ecosurety also pointed to the significance of the Q2 data due later this month.
‘Promising’
In a statement, compliance scheme Valpak said the figures can be seen as promising, even with the impact of the coronavirus outbreak, but that uncertainty remains.
“There is still a lot of uncertainty for the economy and this will continue to have an impact”
“There is still a lot of uncertainty for the economy and this will continue to impact on both the recycling markets and the UK reported demand figures by obligated companies. Currently this appears to be on the low side due to the higher number than usual of late registrations mainly linked to the Covid-19 outbreak,” Valpak noted.
Discussing the number of companies which have yet to register, the compliance scheme remarked: “As of today there are over 450 fewer companies registered than in total last year. This is also going to have significant implications on data to be reported in 2021 on packaging supplied this year by obligated companies, which is why Valpak is working hard on updating the Packflow report to allow DEFRA to set targets based on the best information available.”
Plastics
Martin Trigg-Knight, head of packaging at Clarity Environmental
Martin Trigg-Knight, head of packaging at Clarity Environmental, stated that the figures show positive progress but expressed concern that the lower value of plastic PRNs is making recycling of the material harder.
“The monthly packaging recycling and recovery data continues to show positive progress towards the UK’s obligation, with plastic, aluminium and steel, in particular, reporting high production. As a result, we could see prices soften for many grades.
“There are, however, concerns that the lower price of plastic is making the correct and proper treatment and export of the material more difficult. Both industry and authorities will need to carefully monitor over the next few months to ensure that genuine, high quality, plastic waste exports can still be achieved with a lower PRN subsidy.”
Falling demand
Sandeep Attwal, procurement specialist at Ecosurety, said the data was “strong” and that falling demand for evidence for some materials has seen PRN prices fall.
“The Q2 data will confirm the true picture, however UK processing and exporting saw another strong month during very difficult times. Demand for paper, plastic, steel and general recycling has fallen despite target increases against last year which has led to softening of these PRN prices.”
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Source: letsrecycle.com Plastic
