Alupro raises fears over PRN targets for 2009

And, the organisation's executive director, Rick Hindley, has recommended the government look at revising down PRN targets for next year to ensure the packaging recycling system continues to operate as it should and targets are met.

The warning comes after the price paid by the UK's largest aluminium can reprocessor, Warrington's Novelis Recycling, fell from £800 per tonne at the start of October to just £450 per tonne in the space of four weeks (see letsrecycle.com story).

This significant fall has been accompanied by a dramatic fall in the price paid for steel, with steel giant Corus dropping the price paid for steel cans delivered to its CanRoute centres to zero and reportedly only accepting deliveries from established customers.

Zero value

As a result of the low value of steel, Alupro claimed that some councils had stopped sending co-collected steel and aluminium cans for separation and reprocessing – making the aluminium recycling situation worse.

And, speaking to letsrecycle.com today, Mr Hindley stressed that the problem of aluminium was not restricted to co-collected materials.

“A significant volume still comes through scrap metal dealers and waste management companies and across the board we're still seeing people holding onto it,” he said.

Alupro said that the current price being paid for aluminium was still “ample” to pay for suppliers' separation and transportation costs.

Mr Hindley called on councils to continue sending cans for reprocessing, explaining that: “Recycling aluminium saves so much energy that it is one of the best things an individual can do to help the environment.

“The industry is keen to see recycling deliveries continue at normal levels, and would urge local authorities to support their recyclers by ensuring that collected aluminium cans and foil continue to be sorted and sold for recycling,” he added.

But, Mr Hindley explained that further difficulties were being experienced in relation to stockpiling cans from 'cash for can' collections.

“Where scrap metal dealers run 'cash for cans' schemes, they may have bought at a higher price a while ago,” he explained. “There's going to come a crystal point when they sell them, but it's knowing when that is.”

PRNs

Last month concerns were raised that the UK could struggle to reach its packaging recycling targets for 2008, with figures published for the first nine months of 2008.

And, even prior to the big falls in materials prices, figures suggested that aluminium could fall short of its PRN targets (see letsrecycle.com story).

However, Mr Hindley said today that “we're optimistic we'll make it for 2008”, explaining that “from the information we're getting back from reprocessors, exporters and compliance schemes it looks like we'll be OK for this year.”

But, as a result of the problems with ensuring aluminium was sent for reprocessing, he warned that “next year is looking worrying”.

The government's Advisory Committee on Packaging has said that it may recommend a change to the UK's packaging recycling targets for 2009 if the situation is bad in January (see letsrecycle.com story).

And, Mr Hindley agreed that a downgrading of targets should be looked at, and “not just for metals”.

“I think that'll be something that has to be looked at, not just for targets to be achievable but to make sure the PRN system continues to work,” he said.