Recycling targets for packaging materials are on track to be achieved for 2017, according to the latest set of figures published by the Environment Agency.
The data, released on the National Packaging Waste Database yesterday (23 October), is for quarter three (Q3) – July to September 2017.
The data was released on the National Packaging Waste Database yesterday (23 October).
A stronger than expected plastic recycling performance in Q3 mirrors a trend that was seen in the previous quarter (see letsrecycle.com story).
Paper and plastic recycling volumes have been under great scrutiny in light of the tighter import controls proposed by China on material quality.
Despite these concerns, the performance of plastics and paper continues to be untouched, as paper and plastic stay on track to meet their respective targets.
Paper
In Q3 2017, 921,942 tonnes of paper was collected for recycling, with 585,802 (2016: 640,444) tonnes of this exported overseas for reprocessing and 336,139 (2016: 302,709 ) tonnes reprocessed in the UK.
The figures show that less paper was exported and more processed in the UK, in comparison to the same period 12 months earlier.
Commenting on the paper data, Tom Rickerby, senior market operator at The Environment Exchange, said: “Paper recovered from the disappointing Q2 result, but Q3 remains 5% below the 2016 average.
“Paper PRN prices have strengthened of late and remain vulnerable to the uncertainty and disruption surrounding Chinese import restrictions. Contributions from wood and steel are likely to be needed to meet this year’s General recycling obligation.”
Source: National Packaging Waste Database (NPWD)
Plastics
In Q3, 273,899 tonnes of plastics was collected in Q3, with 179,972 (2016: 168,220) tonnes sent abroad and 93,928 (2016: 85,876) tonnes processed domestically. Overall, both exports of plastics and UK reprocessing tonnages increased when compared to the same period in 2016.
Chris Taylor, commercial manager at Clarity Environmental said: “Plastic has been the most volatile grade so far this year, with a great deal of uncertainty around Chinese imports and Operation National Sword.”
Referring to the plastic PRN, Mr Taylor said: “Prices have remained high despite a consistent and positive performance throughout the year, suggesting that the situation has not been as severe as was feared, and other avenues are being found for exports.
“The Q3 data confirms that plastic has once again performed beyond expectations, and at 77% of its annual target, there are strong indications that this year’s obligation will be met with ease. We’ve seen an immediate response to the data, with plastic prices dropping significantly today.”
Positive
Also referencing a positive plastic market performance, Ian Andrews, director of PRN Trader, said: “These are a positive set of figures with plastic taking the lead. The latest figures indicate that plastic is some 20,000 ahead of quarterly demand.
“Although this is lower than what I expected, it does show signs of recovery as supply continues to be meeting the demand. We are seeing a clear divergence in what the supplier is reporting and what the price of PRNs are.”
Mr Andrews noted that supply figures are not indicative of what “people on the ground” have been saying about the difficulties in exporting due to the crackdown on material quality in China.
He added: “With supply back on track and good progress towards achieving recycling targets, the key question we need to ask ourselves now is what does the price of plastic need to be at in order to maintain that supply?”
And commenting on the plastics PRN performance, Tom Rickerby of the Environment Exchange, said: “The current price of £35 per tonne is the lowest it has been since early March. High PRN values in Q3 have clearly helped UK exporters exploit new opportunities in alternative markets. However, it will be interesting to see whether this level of activity can be sustained as markets outside of China become saturated and the value of the PRN subsidy declines.”
Glass
The Q3 figures also show an interesting market developing on the glass front. Glass aggregate volumes have moved down but market experts suggest that an upturn in remelt tonnage will satisfy any aggregate demand.
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Source: letsrecycle.com Plastic
