Entering the new calendar year, the packaging recovery note (PRN) markets remained strong and early indications continue to suggest that the UK will meet its packaging recovery targets with ease. Many grades have already surpassed their targets for the 2017 compliance year.
Plastic production has had another strong month and total production is now at 999,486 tonnes, which means that only 19,000 tonnes is needed to meet the plastic recycling target for 2017. This would indicate that when all exports and reprocessed figures are taken into account in March, the target will be comfortably achieved. Despite concerns about the impact of Chinese import restrictions, plastic has managed to maintain a consistent and positive performance and production is up compared to this point last year.
With paper production now at 3,643,953, this grade has already easily surpassed its 2017 target of 2,848,327. Glass Remelt production has also been strong in 2017 and is running at a surplus, which is helping to counter the struggling aggregate production.
At 377,794 tonnes, wood production is another grade to have exceeded the 2017 target of 243,928 tonnes. However, with its target set to almost double for 2018, trade prices have increased in anticipation of a more challenging year ahead.
Aluminium prices have also increased, with the grade in seemingly short supply this month. A reasonable strong production in aluminium through December, however, means overall production has now surpassed the target of 90,336 for 2017.
Clarity Environmental Business Development Executive, Sam Caplen, said: “While it looks certain the UK will meet its packaging waste recovery targets for 2017, with increased targets for 2018 and continued uncertainty in the overseas markets, some grades could face a more challenging year ahead.
“Last year we saw inflated prices for Plastic PRNs despite the UK being on target to meet its requirements. Uncertainty over future production is driving prices and we could see plastic remain at higher than average prices. We will continue to follow the moves from China to see what impact the restrictions will have on plastic and paper in 2018.”
As is usual for January, Clarity’s PRN trading team has dealt with exceptionally high volumes throughout the month, and this year we have broken all previous trading records for a single month, surpassing our previous highest by an impressive 28 per cent.
Clarity has been buying and selling packaging recovery notes (PRNs) since our business started in 2002. We are now one of the largest and most experienced open market traders of PRNs. To talk to our team about buying or selling any grade of packaging recovery note (PRN), contact us on 0845 129 7177.
