The situation has been exacerbated by the low value of PRNs – packaging waste recovery notes – which are widely used to help support price paid for recovered bottles as well as film used for packaging.
The price falls, say industry experts, have so far been limited because of good demand in the export market for bottles and film. Since May the Chinese market has been particularly buoyant with agents chasing supplies from the UK. However, an awareness of market trends means that while demand is good, prices paid by the Chinese importers are reducing.
On the film side, demand for the material within the UK is said to have slowed with at least one major user having large stocks of recovered material.
“More and more retailers and factories are sorting their film for recycling and this means the UK market can obtain material more easily,” said one plastics recyclers.
Another said that while the material is available, “it is essential to be very professional and to obtain it at the right price. It is important for companies with waste film to realise that quality is important but we are finding that more businesses now realise this and are happy to spend time on sorting as well as entering into long term contracts to supply us with the used film.”
Demand for plastic bottles from the household sector through local authorities remains good but councils are still wrestling with higher collection costs for the material.
Plastic bottle industry organisation Recoup has highlighted the falls in the price of virgin material and cautioned that “this raises questions as to whether current recyclate, and ultimately baled bottle pricing, will be sustainable in the medium term.”
The organisation continues to promote the kerbside collection of plastics for recycling although these are still not collected by many councils.
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