The value of packaging recovery notes (PRNs) has risen across a raft of material types as interim recycling data reveals a substantial slump in glass recycling.
Total PRN production fell by 3.3% (57,065 tonnes) between the first (Q1) and second quarter (Q2) of 2012, according to the interim recovery & recycling figures published by the Environment Agency.
PRN analysts t2e said: “Overall the weak Q2 data reflects a drop in the amount of waste being collected, falling commodity prices and a significant fall in export demand. There was a flurry of trading on the morning of 23 July specifically on glass, plastic and steel.
“Glass has been the largest mover with a price increase of £9.00 this morning (£16.00 up to £25.00). Plastic has increased from £20.50 up to £23.00 and Steel has increased from £9.00 to £12.50.”
Sinking feeling - the main materials contributing to the overall drop were:
- Paper: down 6% (48,733 tonnes)
- Glass: down 8% (30,232 tonnes)
- Aluminium: down 14% (2,397 tonnes)
- Steel: down 19% (17,552 tonnes)
Analysis by t2e
Market experts raised concerns about glass and plastic targets being missed as a result of the slump.
Phil Conran, director with consultancy 360 Environmental, said: “The big shock must be glass. 2011 averaged 438,000 tonnes per quarter, so the Q1 tonnage of 379,000 tonnes raised eyebrows.
“However, Q2 has fallen still further to 349,000 tonnes, requiring an average of 458,000 tonnes for each of the next two quarters.”
“Plastic saw an increase in Q2, but not nearly enough to compensate for a dreadful Q1 and it now needs to average 161,000 in Q3 and Q4 compared to the 131,000 it averaged in Q1 & Q2.”
A t2e statement added: “Wood is up on Q1 by 43% (55,573 tonnes); recovery remains in strong supply, down on Q1 by 12% (21,856 tonnes), already providing enough tonnage to satisfy over 80% of demand this year.”