Provisional packaging waste recovery data released for the first quarter of 2014 today (April 22) indicates that steel recycling has fallen significantly below the level recorded for the same period in 2013.
And, while there has been an improvement in the amount of glass recycled via remelt applications compared to last year, PRN traders have warned the amount of glass aggregate recycled is slightly short on what should be expected for the quarter.
The provisional data, which is published by the Environment Agency, shows the amount of packaging recovered or recycled between January and March 2014.
It suggests that just 78,861 tonnes of steel packaging were reprocessed in the first quarter of 2014 compared to 108,604 tonnes for the previous year.
The drop is believed to have been in part due to the impact of a shortage in export container availability, making it harder to send material abroad.
But, experts were optimistic that steel figures would start to show improvement once exporters see that prices currently estimated at 15 per tonne for PRNs were entering double figures, and producers begin replenishing stock.
Chris Taylor, of Clarity Environmental said: Its not looking great for steel, and there has been a lot of talk of export container availability being low this quarter. But that would say to me that the material is there so once export starts moving we could see the market stabilise again. This might only be a temporary shortage.
Obligation
Obligated businesses under the UK packaging waste system will not learn the actual amount of packaging they will be obligated to recycle for 2014 until next month, when the Environment Agency will publish the recycling obligations for business covered by the Packaging and Packaging Waste Regulations.
Meanwhile, a total of 359,589 tonnes of glass was reprocessed in the first quarter, up on the 326,816 tonnes recorded for the same period in 2013. The figures are reflected in the market price for glass PRNs, which currently sit at an estimated 50 for remelt and 30 for aggregate applications.
Speaking to letsrecycle.com, Ian Andrews of the Environment Exchange explained that little movement in price was to be expected following the governments decision to cut the glass packaging target to 75% last month (see letsrecycle.com story).
He said: The figures do not come as a surprise, they were anticipated and people are not necessarily concerned over what is presented in the first quarter of supply figures. But glass other [aggregate] demand for the quarter, when factoring in the target reduction this year, is about 132,000 tonnes which shows most of it is going into remelt.
When the 75% target was announced the buyers were positive glass prices would fall, but the sellers say there is no reason why it should go down. This information released today would warrant a shift upwards in volume.
Plastics
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Mr Andrews went on to say that the Q1 plastics figure 198,458 tonnes compared to 158,366 tonnes for the same period in 2013 was almost exactly what producers had hoped to see, but warned any consequential drop in price could upset the balance.
He added: Export markets can be very sensitive to the actual material value. What you do is risk upsetting those exporters and all of a sudden you get the flip effect and the market starts tightening up.
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