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Packaging data continues to show positive signs

By 12/08/2020News

Provisional monthly packaging data published by the Environment Agency continues to show that recycling and export industries are “performing well”, compliance specialists have said.  

Published on 10 August and covering the month from 10 July, the data shows that most materials are reporting increases from the same period last year.

This follows on from more official quarterly data which shows that all packaging materials are on track to hit targets for 2020 (see letsrecycle.com story).

‘Strong performance’  

The figures have been welcomed by a string of compliance schemes, who said the figures suggest that targets will be met comfortably for most materials. 

“It is reassuring to see, during these most difficult times, all recycling materials remain ahead of their targets”

Sandeep Attwal, procurement specialist, Ecosurety

Sandeep Attwal, procurement specialist at Ecosurety, said: “Another strong performance from UK reprocessing and exporting for all materials.  It is reassuring to see, during these most difficult times, all recycling materials remain ahead of their targets. 

“In the last 12 months we have seen the PRN system react to the two very different situations; 12 months ago the UK appeared to be struggling to meet recycling targets but the PRN price correction ensured compliance. The last six months have seen a reverse situation due to a reduction in packaging handled data and strong recycling volumes.” 

‘Positive strides’  

Ash Clay, procurement leader at Comply Direct

This was echoed by Ash Clay, procurement leader at Comply Direct, who said: “In a month where unverified recycling levels weren’t necessarily expected to be quite as strong as previous months by all stakeholders, the recycling sector seems to have proved yet again that despite current circumstances, positive strides continue to be made towards hitting our annual recycling targets”.

PRN prices

Positive signs in the data has also led to suggestions from compliance schemes that there could be a further softening of PRN prices as targets look to be comfortably met.  

Martin Trigg-Knight, head of packaging at Clarity Environmental

Plastic and aluminium PRNs in particular are no longer at the record highs we saw last month, with some Aluminium PRNs at around the £40 mark, compared with some topping £500 last year. 

Martin Trigg-Knight, head of packaging at Clarity Environmental, said: “The monthly data, once again, reports strong production across most grades, with continued progress towards annual targets. 

“This is good news for those producers who have faced a number of other challenges this year as a result of the pandemic. And whilst we must continue to remain cautious over the impact of a recession on the industry, and possible further lockdown measures, the latest figures provide some confidence that any reduction in tonnage later in the year can be moderated in part by a positive first half. 

“PRN prices have largely softened further since the quarterly data in July, and in anticipation of strong progress in today’s data. Paper PRNs have mostly resisted this trend, as their progress has not been as strong as some of the other grades. 

Economy 

Paul Van Danzig, policy director, Wastepack Group, also welcomed the “strong figures”, and said they should provide encouragement to stakeholders during the downturn in the economy. 

“Yet again as a whole, the monthly recycling data continues to show a strong performance”

Paul Van Danzig, policy director, Wastepack Group

“Yet again as a whole, the monthly recycling data continues to show a strong performance and stakeholders should be encouraged to see that despite the huge downturn in the economy, the UK’s recycling and export industries are still performing well.  

For example, plastic recycling continues to see growth each month, which has been reflected in a marked reduction of PRN/PERN prices. Some other materials have reported a reduction, but this may be due to data reporting processes, rather than actual capacity issues. 

The official Q2 data released last month, certainly seems to suggest that we are broadly on track to meet the 2020 recycling targets without issue and this monthly interim report certainly seem to back this up.” 

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Source: letsrecycle.com Packaging