Progress Towards 2023 Recycling Targets: Data released August from July Recycling

According to the most recently available data published in August 2023, all grades are ahead of their year-to-date requirements apart from Glass Other. Compared to this point in the year of the 2022 compliance year there is a reduced overall production (-283,140t) with the majority of grades missing their month requirement, despite this most grades are in a comfortable position for this time in the year.

Although we saw a reduction in overall recycling obligation this year, there are still a number of companies yet to register for 2023. This is likely to mean with full demand unknown, prices are likely to stay relatively high across most key grades in the immediate term.

The most recently available data from July recycling shows a steady production level for Paper and Board with 284,000 Packaging Recovery Notes (PRNs) generated. This is just over its monthly target, leaving Paper and Board 328,229t ahead of its year-to-date requirement which is positive at this stage in the year; however, it’s important to mention that Paper and Board’s oversupply will feed into the General Recycling obligation.

As previously mentioned, it is also important to keep in mind that the total obligation figures are subject to change as businesses continue to submit their packaging data for 2023.

July was a weak month for Glass Re-melt with 72,200 PRNs generated, this is 28,400t below this grade’s monthly requirement. Despite this, Re-melt continues to sit ahead of target by 51,400t.

Glass Other suffered the most this month with 21,630t reprocessed in July, once again slipping significantly behind target despite getting back within 1000t of its target in the Q2 data release.

It’s important to note that the deficit between Glass Other and Glass re-melt can be met through Re-melts oversupply however, Glass as a whole remains ahead of its year-to-date requirement.

July PRN data shows that Aluminium missed its monthly requirement by 1,520t with 10,670 Alu PRNs generated. This leaves Aluminium 4,640t ahead of its year-to-date requirement and in a relatively strong position for the months ahead. As with all the grades, we are working with an obligation that is due to increase as more businesses register with the Environment Agency for the 2023 compliance year, with few Aluminium reprocessors and exporters this could be a grade considered at risk of falling behind.

Steel missed its monthly requirement by 5,730t with the latest available data showing 22,830t of Steel reprocessed in July leaving this grade 24,520t ahead of is year-to-date requirement. This is a grade in a steady position; however, it is important to keep the late producer registrations in mind and consider how this may impact Steel’s year-to-date progress.

Plastic had a strong month this month (96,930t) however, this is not a significant overperformance against its monthly requirement (91,550t) meaning that Plastic pricing could remain high and steady despite this grade being 31,175t ahead of its year-to-date target. Although this grade is in an advantageous position for the rest of the year ahead the progress Plastic reprocessing is making will need continuous review as more obligated businesses submit their 2023 packaging data.

It was a weak month for Wood with 21,750t of PRNs generated, missing its monthly requirement by 6,120t. In spite of this weak month, following several months of overperformance, Wood sits 170,620t ahead of its year-to-date requirement. Although Wood is significantly ahead this grade is usually used to ease the strain on the General Recycling obligation and there is still potential for this grade to fall behind once the final obligation is released.

“Although there has been reduced production compared with July 2023 with all grades missing their monthly requirement, most grades are sitting in comfortable positions when considering their year-to-date targets.

It is positive to see a strong Plastic performance this month when factoring in last year’s availability issues and high pricing. There are concerns around Glass Other as it slips further behind target, we could see some price volatility with this grade in the coming months.

Despite the overall figures suggesting a less volatile market, caution is urged as the currently available obligation data is incomplete and the PRN volume requirement for 2023 will increase as producers continue to make late submissions over the coming months.”

Speak to one of our packaging compliance and PRN trading experts using the form below. A member of our team will get back to you as soon as possible.