New met the old last week with the Environment Exchange unveiling its online trading platform for used cardboard and newspapers at the historic Frogmore Paper Mill in Hertfordshire.
The development of the online marketplace marks an expansion by t2e which already runs the Environment Exchange which allows for buying and selling of PRNs packaging waste recovery notes.
The PRN side of the business was set up in 1998 and has seen t2e reach a PRN turnover of more than 1 million in the last financial year.
Managing director Angus Macpherson said: Now, we are moving into secondary raw materials. Our paper platform is the first phase and at present there are no charges for joining or trading.
Mr Macpherson said that the reason behind the platform was a need to give the opportunities already available in commodities marketplaces to secondary raw materials such as paper.
This is a great opportunity for industry, particularly now at a time when we are seeing a clear political shift from a waste industry to a resource industry, a growing scarcity of primary resources, and a growing acceptance of raw material commodity standards and internet trading.
EN643 grades 1.05 and 1.09 can be put on the spot and forward markets up to three months in advance, he said. What about the quality? There are going to be issues to deal with over quality. There is a known quality and if that assumption doesnt work there is a bond or deposit. If you supply less or poorer quality you will get this deducted from your bond value.
Market
The marketplace will operate on a confidential basis although when material is collected, the two parties involved will know who each other is.
Mr Macpherson explained that the buyer can choose a number of locations to buy at and the distance from.
And, he conceded that there had been strong discussions over the payment process. We have had rumbustious conversations regarding payment and they buyer will have to pay interest if the payment is not on time.
Ten companies have already signed up to use the paper platform. They are: Aylesford Newsprint, Cyclelink UK, Elsa Waste Paper, Eurokey, International Recovered Paper Ltd, Loop Recycling, Mark Lyndon BV, Palm Recycling Ltd, Reliance Fibres and Shanks.
When the marketplace went live there were bids totalling 3,610 tonnes and a price spread of between 120 and 135/tonne.
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Commenting on the new venture, Tracey Cowley from International Recovered Paper, said: It was good to see some familiar faces at the launch and to hear more about the new Recovered Paper Market. I wish t2e every success in this new venture and look forward to being a part of it.
Other participants told letsrecycle.com that they wished the new service well. However there were some concerns about issues regarding the bond and payment procedures although assurances on these were offered by Mr Macpherson.
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