Although plastics reprocessing has boomed according to data for the first half of 2005 (see letsrecycle.com story), experts are warning that the market will be much tighter than has been suggested.
”In some cases, due to export rejects or poor quality loads, then PRNs will not ultimately be issued on all goods reported as received.“
– Andrew Simmons, Recoup
Extrapolating data on reprocessing for quarters one and two suggests that a surplus of plastics reprocessing of up to 26,000 tonnes could be achieved over and above recycling targets that producers are responsible for achieving.
However, plastics reprocessors warn that a number of mitigating factors mean higher reprocessing levels this year may not translate into such a surplus of plastic PRNs – the evidence bought from reprocessors by producers to show their recycling responsibilities have been carried out.
Andrew Simmons, chief executive of plastic bottle recycling organisation Recoup, told letsrecycle.com that plastic PRNs will be carried over into 2006, reducing availability this year. And, he said that for a variety of reasons PRNs will not be issued on all materials reported as received for recycling.
“At the moment, PRNs have been issued on about 78% of all materials received,” he explained. “In some cases, due to export rejects or poor quality loads, then PRNs will not ultimately be issued on all goods reported as received. If we look at the proportion of PRNs actually issued, this suggests that the market will be tight.”
Risk
Mr Simmons added: “From a risk management perspective compliance organisations would be very ill advised in my view to wait until November/December to buy in the hope of surpluses, as it is entirely conceivable from the published data they may not appear and obligations will not be achieved.”
Other reprocessors concurred with this view, and Alan Davey at Linpac said that another reason that some reprocessors may decide not to issue PRNs is the auditing process needed to monitor the integrity of the PRN system. “There's always a likelihood that some don't get issued,” he said. “You need auditors to okay what you've done and this may mean some decide not to issue PRNs.”
Targets
Others also pointed out that Defra is pushing up targets next year (see letsrecycle.com story), so the carry-over of plastic PRNs into 2006 could well be at least on a level with the 23,000 tonnes worth carried over into this year from 2004.
However, Doug Mercer at Frank Mercer & Sons warned that reprocessors would “only just hit the target” this year, and that therefore compliance schemes will find it difficult to find enough plastic PRNs to carry over into 2006.
Subscribe for free