PRNs help boost use of waste wood in boardmaking sector

Several of the major board manufacturers have told letsrecycle.com that as a result of the increased packaging recycling targets they are now producing chip board with up to 50% recycled material, an increase from no recycled content six or seven years ago.

And the manufacturers have said that chipboard with an increased recycled content performs as well as virgin fibre. One manufacturer said: “Recycled chipboard is more cost effective and will continue to be even more so in the future with an increase in landfill tax and an increase in PRN prices. Everything is pointing to more recycling and the chipboard is better because it is drier.”

The market has grown in response to the increased demand for material. Michael Tracey, chairman of the Wood Recyclers’ Association, said: “There is good demand for wood and enough capacity to take it. Most boarders are investing big sums of money and soon there will be more demand than supply.”

One board manufacturer added: “It is inevitable that the market will continue to grow. It is demand pull rather than a supply push situation.”

Supply

Another board manufacturer reminded the market that switching back to the use of virgin fibre if recycled wood was in short supply or became too expensive is always an option. He said: “The market has grown in accordance with demand which wood recyclers have responded to. In the future, if the market develops so that demand for recycled wood outstrips capacity we can use virgin fibre to keep prices down.”

The board manufacturers say that they don’t fear a shortage of supplies because they are working closely with the recyclers to ensure that the wood they receive is of acceptable quality. The manufacturers also say they are ensuring that PRNs are getting passed down the chain so that the supplies can invest in additional processing capacity and intensify supply.

But some recyclers have told letsrecycle.com that the market is too crowded which is driving down prices and that although in theory PRNs should encourage wood to be separated, the income from PRNs does not seem to be reaching all recyclers.

Andrew Murray, of Yorkshire-based Timber Recovery, said that currently while demand exceeds supply, although there is plenty of wood in the market it is not being sorted. He said: “There are not enough people segregating wood. This is an ongoing problem, we are constantly on the look out for more wood.”