Temperatures are still running high in parts of the industry over the decision by the Scottish Environmental Protection Agency with regard to Wastepack's failure to take 'reasonable steps' under the Packaging Waste Regulations for 2001. However, most of those dealing with PRNs (packaging waste recovery notes) – where a PRN typically represents one tonne of material recycled or recovered – believe the market itself is stabilising.
The biggest headache for businesses at the moment is the continued delay from the government over the figures for 2001 compliance. There are fears that the reason behind the reluctance of the Department of the Environment, Food and Rural Affairs to release the data is that the UK has not met its targets for the period.
On the whole, the market for PRNs have been edging up a pound or two over the last few weeks for all materials except plastics, which is still seeing considerable volatility.
Plastics
While the prices for plastics PRNs are changing from week to week, they're generally much lower than many reprocessors feel they should be.
With prices falling as low as 30 per tonne, reprocessors are feeling the pinch. Lee Clayton of Delleve Plastics said: “I'm struggling at the moment – I'm not going to let them go at that price. People should just say no. You've just got to stick your heels in and say no.”
But with all the uncertainty, many firms are getting rid of their PRNs as quickly as possible in order to simplify strategy planning for the rest of the year. However, to some extent this approach may well be contributing to the instability of the price itself.
Paper
As far as paper PRNs go, the current level is thought to be about right, creeping up towards the 30 per tonne mark.
“Generally things are going pretty much the same as last year,” Paperpak’s Geoff Butterworth said. “Although the targets have now gone up from 56 to 59%, I have a feeling a lot of companies had a bad year last year.”
Glass
With the price for glass PRNs now moving beyond 30 per tonne, there appears to be some optimism for reprocessors. Tim Gent, contract director at Midland Glass said: “The market's just about to go through the roof. There's been tremendous interest over the last few days. A week ago we sold some for 30 each – I won't be letting any go for that price now.”
Other figures from around the sector point at prices reaching above 35 per tonne.
Steel
Steel prices are up – at around 30 – 35 per tonne, and are expected to continue to rise. This time last year, prices were half this level, and some experts say because of fears of a shortfall of PRNs overall, there is demand in the sector for as much as another half million tonnes.
Wood
The market for wood PRNs is fairly steady, holding at between 20 and 23 per tonne, although some sales have been around the 25-26 level.
Andrew Murray, managing director at Timber Recovery in Pontefract, said: “People are tending to pre-buy at the moment, to keep the price fixed, so I can't see it going up any time.”
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