Packaging deadline looms as market remains relaxed over PRNs

Within the packaging waste sector a watch is being kept for Valpak's move into the market to purchase its PRNs for the third quarter. The scheme, which has an obligation of about 2.6 million tonnes out of the 4.7 million national compliance obligation is expecting to pay a higher price than it has during the first six months of the year. Some estimates say that a 24 per tonne figure could be applied for PRNs for several materials.

John Turner, Valpak chief executive, who has gone on record to say the scheme will definitely meet is obligation, said: “There are some signs that the market is beginning to move and it will be interesting to see how things develop over the course of the year. One assumes that everybody is taking the proper steps to comply and obtain sufficient evidence to do so. Valpak is, of course, taking all necessary steps to comply, as can be seen from our well publicised initiatives in glass and our work with local authorities.”

Targets
Government targets have been set for an overall 56% recovery and 18% material-specific recycling of packaging waste for 2001 on an estimated obligated tonnage 8.48 million tonnes. They compare to the 2000 domestic targets of 45% recovery and 13% for material-specific recycling.

But, a question remains over whether or not the estimate for obligated tonnage this year is correct. The target figure, to ensure the UK reaches a 50% recovery rate, is 56% of the obligated packaging reported by companies. Government estimates for this year put the overall obligation at about 8.48 million tonnes. But data was returned to the Environment Agency last month and once added up should give a correct figure.

If the figure is substantially lower than 8.4 million then the actual PRNs needed would be fewer and prices would fall. If the reported figure was similar to government estimates then it is likely that the PRN price will firm or rise. The Agency is said to be working on the data but is still to make it available via the Department of the Environment, Transport and the Regions.

Mike Beard of Wastepack said that the market at present “is reflecting ignorance of what the true obligation is. If it is 4.75 million tonnes then the PRN values will rise, if it is much lower then prices would fall.”

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