The comment from the government body came as many waste exporters raised fears that the cost of sending containers to the Far East could be even more than originally expected – with some fearing a “catastrophic” 100% price rise.
Speaking yesterday, the Environment Agency said that, if the rise was implemented, the UK was in danger of recycling less material and becoming a dumping ground.
A spokesman said: “If this price increases it could have an impact on the market capacity for waste material to be recycled and could bring about a down turn in recycling. And, like all activities related to an increase in cost such as pay-as-you-throw, it could increase fly-tipping.”
The EA explained that even though alarm bells were not ringing “at the moment”, it was “potentially concerned that it will have a detrimental affect on recycling.”
Exporters
Exporters of waste materials meanwhile said that the anticipated $250 price hike would squeeze already tight profit margins.
In particular, paper recyclers said they would be affected as they currently export around four million tonnes of waste paper a year from the UK, mainly to China.
Peter Seggie, recovered paper sector manager for the Confederation of Paper Industries, said: “It may certainly have an impact on the competitiveness of recovered paper for exports. The UK is very reliant on overseas markets and there is insufficient reprocessing infrastructure here.”
Rise
However, David Symmers, of the Independent Waste Paper Processors Association, warned that paper exporters were more worried about a potentially even bigger price rise.
Everyone is concerned but waiting to see what will happen
David Symmers, IWPPA
At present, charges for waste exports are quoted, as one figure, at around $750 a container but it is expected that this is to be split into three charges for which the $250 freight or “ocean” charge is just one – alongside port costs and inland freight charges.
Some fear this could see prices rising by as much as 100%- throwing the export market into chaos as dealers struggle to recoup their losses from either the waste supplier or buyer – or find alternative markets in Europe.
Mr Symmers said: “There had been mention of a 100% price increase – that would be catastrophic. The whole of the market structure in Europe could be affected if it is big enough.”
Welcome
Despite widespread objection to higher export prices, the news was welcomed by some in the recycling industry with interests at home.
Jessica Baker, of UK plastics recycler Chase Plastics, explained that it would help UK reprocessors to compete for waste material.
She said: “From our perspective as in independent UK plastics recycler it can only be a good thing as it has been very difficult to compete for UK feedstock waste with export material subsidised by PERNs. It will help to encourage indigenous reprocessing.”
Ms Baker added that the quality of waste material for reprocessing might improve if it became less reliant on being sorted by cheap labour overseas.
She said: “Some of the good practices regarding quality developed prior to the export boom have been lost and we would prefer a better system in the UK.”
Impact
Whatever the effect of the price rises may be, everyone in the waste exports sector acknowledged that it was too early to tell what the price rises for exports would be and therefore their exact impact.
Mr Symmers explained: “I think there will be a lot of horse-trading over the next two months as to where the price will lodge. Everyone is concerned but waiting to see what will happen. It depends how much the shipping lines dig their toes in.”
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