The drop in packaging recovery note (PRN) prices, following the publication of Q2 packaging recycling and export data, has continued as expected. Plastic, steel and aluminium PRNs, in particular, have fallen significantly since July in response to the positive recycling data which revealed that we remain in good stead to meet our 2016 targets.
Chris Taylor, Clarity Environmental Commercial Manager, said of the month’s PRN trading: “We’ve enjoyed an excellent period of trade following softening prices across all markets throughout September. Plastic, steel and aluminium prices have fallen significantly in the wake of such strong recycling performance. Steel and plastic markets have experienced turbulent times in recent years, but with both grades well on the way to hitting their targets, this year is revealing a very different story.”
Chris continued that prices are likely to remain steady with the next publication of recycling data: “Quarter 3 data will be released in late October and we expect to see a strong return. Whilst we are always mindful that external factors can force sudden changes to the market, there is currently no reason to believe that the massive hike in prices seen in the last quarter of 2015 will be repeated this year.”
Forthcoming changes to mixed paper PRNs were announced last month following a consultation between Defra, the Advisory Committee on Packaging (ACP), the Confederation of Paper Industries and the Recycling Association. Just over one third of mixed papers will count as packaging materials in the PRN system after new research into the paper grade. Coming into force from 1 January 2017, under the new rules more paper PRNS can be issued by accredited reprocessors and exporters, increasing from 23 per cent to 34.5 per cent. Around 200,000 additional mixed paper PRNs are expected to be supplied by reprocessors and exporters in 2017.
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.