There has been a strong demand for aluminium beverage cans in recent months and last month aluminium can recycler Novelis increased the price it paid for the material by £100 a tonne.
Aluminium Packaging Recycling Organisation executive director Rick Hindley said: We are cautiously optimistic about the year ahead and meeting our targets.
Hindley added that the first quarter PRN figures were up on the previous years figures and that there may be enough PRNs for aluminium to meet its obligations.
Recent economic conditions have had an affect on PRN availability as demand for materials falls because of the recession. Last week MRW reported (22 May) that the Advisory Committee on Packaging predicted that the market for PRNs was likely to be tight this year and tighter in some materials than others.
Packaging compliance scheme Valpak marketing director Duncan Simpson said: Overall the economic climate makes the situation difficult. Valpak is progressing well with procurement contracts and increased activity across most markets for materials. This is reflected in the slight decrease in costs across all materials with the exception of steel.
Steel is affected most by the downturn because of links to the construction industry which is a global issue and is a bigger problem to resolve. It is something that we will keep a close eye on as the year progresses.
Packaging compliance scheme Budget Pack has a mix of contracts with exporters and recyclers.
Budget Pack managing director Stephen Clark said: PRN price is a result of the perceived supply demand balance of recyclate and it is important to note that producer obligations has reduced. When this is coupled with reprocessors and exporters controlling the time and volume of PRNs they sell and schemes doing likewise with when they buy, the localised availability of PRNs causes prices fluctuate throughout the year.
There are always changes in the PRN market and each year is different to the next as different pressures change the supply demand balance. With this in mind, we always try and expect the unexpected and adopt a balanced and safe procurement strategy that ensures we achieve lowest cost compliance for our members and sustainable relationships with our suppliers.