Agency monitoring glass PRN situation

The comments came as the price paid for glass PRNs continued to rise, from around £25 in July to up to £36 in August.

Glass PRN prices first shot up last month, after provisional data for the second quarter of 2012 revealed a sharp drop in the recycling performance for the material (see letsrecycle.com story).

Commenting on the PRN figures, a spokeswoman for the Agency, said: We are keeping Defra informed on the positions across all reprocessing of packaging waste. In the case of glass we will continue to monitor the position and if necessary flag issues to Defra which may start to compromise our ability to meet the recovery targets for 2012.

The Agency said it attributed the low levels of glass recycling in the second quarter to the fact that Moss Construction, a large glass reprocessor based in Doncaster, South Yorkshire, was no longer accredited to issue PRNs. In addition, it noted that a further five small glass reprocessors were also not accredited for the 2012 compliance period.

Under the recycling and recovery targets, obligated businesses must recycle 1,702,848 tonnes of glass in 2012. In the first two quarters of the year, the UK recycled 728,694 tonnes of glass. Even coupled with the glass carried forward from 2011 (57,372 tonnes), the UK still needs to recycle 916,782 tonnes to meet the target. It is hoped that glass tonnage from the Olympics might help to improve the UK’s performance in the third quarter.

Market

Despite the low figures, the Agency said that it was unable to interfere in the market place, but said that the high price of PRNs could see more companies becoming accredited to issue them. A spokeswoman for the Agency said: As a market based mechanism for achieving compliance with the packaging regulations, we do not have the ability to interfere in the market place. Reprocessors seek accreditation on a voluntary basis; they are not mandated to seek accreditation.”

Some accredited operators and those not currently accredited may see the current market position as being one that would allow them to push more glass through into recovery to enable them to meet the demand for PRN and PERNs.

Targets

Some players in the market, however, remain worried about the glass PRN situation. One glass reprocessor expressed concern that firms would be likely to not carry any PRNs over into 2013, which could make next years target difficult to meet. The target is also complicated by the fact that it will be split, with a certain proportion having to be met through re-melt.

Some in the waste sector have suggested that the glass PRN target could be met more easily if PRNs could be issued against the glass content of Incinerator Bottom Ash (IBA) is counted, on the provision that the IBA is recycled.

Similarly to some mixed glass packaging, IBA is used by the aggregates industry for road surfaces and other construction projects. A PRN can be issued on the mixed glass used in aggregates, but not on the glass content of IBA, which is thought to count for 20% of its overall content.

Others in the industry think the increase in PRN prices could see some reprocessors cleaning badly contaminated glass, which would otherwise be sent to landfill or for aggregates.

Prices

While the price paid for PRNs continues to rise, the price paid for glass remains relatively stable.

Speaking to letsrecycle.com, one glass reprocessor said: We havent seen any kneejerk reaction in the glass prices. Everyone seems to be staying calm despite some remarkable things in the PRN market.

He said that in the past when the PRN figures had been low, the glass market had panicked and prices increased. However this had left some paying higher-than-necessary glass prices when the PRN market stabilised.

We all got badly damaged when the glass industry upped the profits on the back of the PRN prices, so it will take time for confidence in the market place to build, for the glass prices to follow.

Most glass buyers are being careful meaning we are seeing a very gentle rise in glass values. The really low quality stuff that no one can do anything with wont be affected, but the good quality green and mixed is coming under a bit of upward pressure.