Reprocessing industry representatives have told letsrecycle that despite more local authorities looking at plastic bottle collections they are concerned at the current situation which is seeing strong UK demand for material not being met by a corresponding growth in supply.
Even increased prices for plastics, driven up by the shortage of materials, appears not to be helping the situation. Steve Williamson, recycling manager for Shanks, said: “Clear PET prices have increased by about 20-30 over the last couple of months to about 150-160 a tonne. There is a shortage of HDPE and prices are going up.”
Mr Williamson confirmed that the market demand was generally good and that reprocessors are looking for as many plastic bottles as they can get.
However, all is not well on the manufacturing side. One company told letsrecycle that the shortage of materials was making life difficult. “We are not getting the volumes we need and the plastic bottles themselves are too expensive. It's a tight business to be in and there is not enough material.”
And imports of cheap finished products, such as plastic film, are also making life hard for plastic recyclers. One plastic film reprocessor said: “We have to work twice as hard as two years ago. It is not a buoyant time. There are too many imports from the far East and Italy and the climate change levy is adding costs to the bottom line.”
Concerns about the levy are widespread within the plastics sector. Colin Williamson, chair of the British Plastics Federation recycling committee, said that most members were having a rough time. “The plastic industry is made up of a lot of small companies and we don't have any exemptions so the levy is selectively hitting us. This is ridiculous as other packaging industries have an 80% exemption.
Closures
“There will be more closures this year and more next year. The industry contracted in 2000 and will contract in 2001, which will mean that more bottles will have to be exported out of the UK. With 1 million being sucked out of the industry by the climate change levy there will be less money available and recyclers will be less able to pay for the material collected.”
However, a more positive note was sounded by Recoup, the UK's organisation promoting bottle recycling. Chief executive-designate Andrew Simmons, said that most of the problems were caused because of a shortage of plastic bottles. “The climate change levy will have more of an impact because a lot of businesses are operating below capacity because they can't get enough material. When we get more tonnages businesses will become more viable and the levy will have less impact.
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