Provisional packaging data for the second quarter of 2020 has shown that all materials are on track to hit their obligation targets for 2020.
However, the figures haven’t yet been verified by the Environment Agency and so are subject to change.
As outlined below, despite a number of companies still to submit data, the provisional figures for the three months between April and June show that all materials are on track to hit 2020 targets.
Despite falls for paper and wood when compared to the same quarter as last year, all materials are on track to hit targets
Paper and wood, however, were significantly down when compared with confirmed figures for the same period last year.
The figures were well received by many compliance schemes, who all said they were encouraged by the figures, but warnings have been sounded about the impact of the recession and the fallout of the coronavirus pandemic.
It has also reportedly led to some PRN prices “softening” as confidence around targets grows.
‘Very strong’
Martin Trigg-Knight, head of packaging at Clarity Environmental
Martin Trigg-Knight, head of packaging at Clarity Environmental, said: “The interim Q2 data is very strong as was expected, with good production reported across all grades. Producers, in particular, will welcome this continued progress towards the annual targets following such a volatile year for prices in 2019.
“In anticipation of the data release, we had already seen a softening of PRN prices for plastic and aluminium, which, with carry over, report 62 and 67 per cent of their annual production targets respectively. We could now also see a response in the PRN prices of steel, which is at 64.5% including carry over.”
Encouraged
The data hasn’t been confirmed by the Environment Agency, so at the moment remains unverified.
A number of companies are also still to submit their data for the quarter, so figures could be altered in the coming weeks.
Despite concerns over the impact of lockdown, the Q2 figures suggest all targets are being met
David Daw, project analyst at Valpak, said the compliance scheme is “broadly encouraged” by the figures but warned that they are only provisional.
“Despite the ravages of coronavirus, material appears to be continuing to get collected and reprocessed. If this performance is maintained through the second half of the year it looks like the UK will be on track to meet its 2020 targets across all materials, although it must be remembered this data is currently unverified so is subject to change,” Mr Daw said.
He added: “It is particularly important that the plastic export data is scrutinised carefully following the well-publicised concerns regarding poor quality material being dumped abroad and recent allegations of fraudulent activity. It is also important that the number of late producer registrants are reduced as quickly as possible in order for the true level of demand to be assessed.”
Ecosurety
After the release of the data for the first quarter of 2020, warnings were sounded over the forecasting the supply of post-consumer packaging during lockdown restrictions (see letsrecycle.com story).
And, while optional monthly data has been positive, the more official provisional Q2 data will come as some relief to compliance schemes that targets are likely to be hit.
“We remain confident that compliance will be met for the remainder of 2020, but volatility will continue”
Sandeep Attwal, procurement specialist at Ecosurety, said: “Considering the pandemic and a strong performance in Q2 from UK reprocessors and exporters, and despite a severe recession developing worldwide the supply of plastic, glass, steel and aluminium PRNs remains strong in Q2.
“Demand for paper, steel, plastic and general recycling PRNs remain below last year’s requirements despite target increases. This has offset the disappointing paper recycling and exporting data.
“We remain confident that compliance will be met for the remainder of 2020, but volatility will continue as recession and national/regional lockdowns occur.”
‘Resilience’
Martin Hyde, policy leader at Comply Direct, added: “The results of the quarterly data released yesterday were very positive and alongside the strong start to the year, packaging recycling levels indicate the recycling sector’s overall resilience in the face of current and continued difficulties. The data shows no lack of availability of PRNs which will be welcome news for obligated producers, especially after a volatile 2019.”
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Source: letsrecycle.com Packaging
