Another crash in the price of glass packaging recovery notes (PRNs) is an “absolute certainty” if the Government does not set higher packaging recycling targets for 2012, says glass recycling firm Recresco director Tim Gent.
Since the second quarter figures were released, the PRN price of glass has begun to drop again. MRW’s PRN prices, in partnership with PRN trading platform Scrap-Ex, show that the glass PRN price has fallen from £10 per tonne on 19 July down to the current trading price of £7 per tonne. MRW reported on the first crash which saw the value of the glass PRN plunge to £1.50 in November last year.
Gent said: “Q2 figures showed a surprising amount of tonnage for glass recycling, which seems to have caused a considerable downward movement in price. The numbers are such that the PRN price has not collapsed but it has dropped, and I don’t know if it will recover. There would have to be phenomenally low packaging recycling figures in Q3 for it to make an improvement in price.”
The effect is such that Gent believes recovered glass may not have a value in 2012, which would affect glass merchants. Since Q2 PRN figures were released in mid-July, the price of green glass has dropped by £5-£8 per tonne and mixed glass has dropped by £4-£9 per tonne.
“It’s not a dire situation, unless you are a merchant who is relying on the material’s value,” said Gent. “If you have agreed with a local authority that you will take the material at a fixed price, hoping to make a profit from selling it, then it does look bleak.”
British Glass recycling manager Rebecca Cocking said: “The decrease in the PRN price could be an affliction of Q2 figures or is could be a general concern about low targets this year. It is worrying if it drops any further for those people who have local authority contracts because they could lose money. There is always the possibility that any of the recovered materials could crash.”