The company said in its latest annual report that its own PRNs were “reasonably priced throughout the year”. The report highlighted recycling projects funded by Corus selling its PRNs.
 Corus has used funding from packaging producers to assist 74 local authorities with steel can recycling schemes |
High prices for PRNs/PERNs – the evidence used to show packaging producers have carried out their legal obligation to pay for recycling – are usually seen if it is thought there will be a shortage of PRNs in a year. This would be because reprocessing levels fail to reach the required levels for producers to meet their annual targets.
But John May, manager of Corus Steel Packaging Recycling, said there had been “extremely high prices” charged for steel PRNs in 2005, “when it appeared, incorrectly, there might be a serious shortage”.
Mr May said: “While the UK industry has elected to run a market system based on supply and demand, there are reasonable limits to what should be charged for PRNs and PERNs, particularly when the easy recyclability of steel is taken into account.”
Task force
Mr May revealed that Corus is participating in a task force set up by Defra's Advisory Committee on Packaging to address concerns regarding the market mechanisms for metals PRNs and PERNs.
Steel PRN prices are now dramatically lower than the 200 per tonne levels seen in some trading last year, moving towards the 30 per tonne mark in recent weeks.
It is known that part of the reason for high steel PRN prices last year was the late accreditation of steel reprocessor Alpha, which saw the Agency agreeing to accept back-dated steel PRNs.
But the Corus report revealed that its 14 “CanRoute” collection centres had collected 36,341 tonnes of steel cans in 2005, and the company as a whole had boosted its own recycling by 7.5% since 2004.
Mr May observed that the steel industry had already reached the 50% metals recycling target set by the Packaging Directive for 2008. The sector will still need some recycling growth before 2008, to make up for the lower recycling rates being achieved in the aluminium sector.
Spending
Reporting on the spending of revenue generated by the sale of its PRNs to packaging producers, Corus said it had assisted 19 recycling organisations and 74 local authorities in steel packaging recycling projects.
It said 90% of local authorities now have kerbside collection schemes that pick up steel cans, thanks in part to 3.4 million invested by Corus “directly into practical recycling infrastructure” since 1999. Corus also invested PRN revenue into internal improvements at its steel plants in Teesside, Scunthorpe and Rotherham.
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Another key focus for the steel reprocessor's PRN investments continued to be education programmes in 2005, it said. Corus recently relaunched its Steel Can Recycling Information Bureau website, providing recycling information for schools and householders.
As of next month (July 2006), Corus will be moving its Corus Steel Packaging Recycling unit, which coordinates the company's work to increase steel recycling, to the Trostre site in South Wales. Corus said it would now be focussing its PRN spending on “big win” projects.
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