The volume of packaging recovery notes (PRNs) traded through the Environment Exchange (t2e) platform rose by 14% in the 2020 compliance year when compared to 2019.
A total of 2,002,973 tonnes of PRNs were traded on the t2e platform in 2020, up from 1,759,185 tonnes the previous year.
There was a significant increase in the volume of aluminium and glass other PRNs traded, with volumes rising by 72% and 59% respectively.
By contrast, the volume of glass remelt and recovery PRNs fell by 15% and 17% respectively, as outlined below.
Aluminium, glass other and wood saw the highest rise in volumes traded in 2020, compared to 2019
Prices
It was a significant year for recovery PRNs in terms of prices, with the average price rising by 139% from £0.56 in 2019 to £1.34 in 2020. This comes as they are to be dropped from the targets from 2021 (see letsrecycle.com story).
The prices of aluminium and wood PRNs saw large reductions however, falling by 56% and 42% respectively. The average price of an aluminium PRN in 2020 was £132.04, whereas for wood PRNs it was £10.36. The average plastic PRN price also fell significantly, from £279.82 in 2019 to £157.65 in 2020.
2020 saw a 39% decrease in total contract value, from £129,193,594.85 in 2019 to £79,356,747.20. The average contract volume in 2020 was 503 tonnes, up 7% on 2019.
Aluminium, plastic and wood all saw falls in 2020 after some reached record highs in 2019
t2e
t2e says 2020 was a record year for the number of tonnes traded in the PRN markets on its platform. The year saw more than two million tonnes traded on the platform for the first time (see letsrecycle.com story) .
A record 3,985 contracts were traded on the t2e platform in 2020, up by 6% on the previous year.
Speaking about 2020, Angus Macpherson, managing director of t2e, said: “This has been another challenging year with the emergence of Covid-19 as well as a national lockdown.
“Recycling rates remained very strong in 2020 with the increased targets met at a lower cost to industry than in 2019”
“In spite of this, recycling rates remained very strong in 2020 with the increased targets met at a lower cost to industry than in 2019, showing the adaptability of the PRN system and its capability to cope with the unexpected.
“There will be challenges to come in the 2021 compliance year: the effect of Brexit on exports; the Basel convention amendments on Plastic exports; the continued impact of Covid-19, as well as further increases to recycling targets and a consultation on extended producer responsibility.”
PRNs
Set up in 1998, the Environment Exchange is a transparent trading platform for members to trade PRNs. Under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007, UK companies that produce packaging – typically retailers, packers, fillers and raw material producers – have a legal obligation to contribute to the cost of its recycling. They do this by purchasing PRNs, which are issued by packaging reprocessors and exporters.
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Source: letsrecycle.com Packaging
