Progress Against Recycling Targets: June PRN Data

The latest recycling data paints a generally positive picture for Glass Other, Aluminium, and Plastic grades, with many exceeding their targets and demonstrating strong performance. However, certain grades such as Steel and Plastic are encountering notable challenges that warrant attention.

Despite the generally positive outlook, it is important to exercise caution in your approach to any of the grades. This data report is from voluntary reporting from reprocessors; due next month, we will receive the mandatory quarterly report which will offer a more comprehensive and accurate assessment of the UK’s recycling landscape.

Paper and Board experienced a slight downturn in May, underperforming against its monthly requirements. However, with the substantial overproduction in the first half of 2024, the grade remains robust. Despite the minor slowdown in June, influenced by low PRN values, the market shows steady demand supported by strong commodity prices. Continued vigilance is necessary to monitor any long-term effects.

Glass Other maintained a solid performance, exceeding its target by 11,000 tonnes. The increased supply of aggregate highlights a positive shift in glass recycling, despite the challenges faced by the re-melt sector.

Glass Re-melt showed signs of recovery from April but still failed to meet its monthly production targets, increasing its shortfall by 11% or around 60,000 tonnes since the start of Q2. While this hasn’t immediately impacted the market, cautious monitoring is recommended.

Steel encountered significant challenges, with a notable 47% drop in performance from the previous month, leaving it only 162 tonnes ahead of its target. This substantial decline in supply, coupled with potential changes in UK furnace operations, suggests possible short-term market disruptions. However, considering last year’s obligations and positive surplus figures, the grade remains in a relatively stable position.

Aluminium demonstrated its strongest performance to date, although it still lags behind its targets. The modest decline in recycling and deviation from typical growth trends have raised PRN prices due to reduced supply.

Plastic saw a slight improvement from the previous month but continues its slow start to Q2, trailing its monthly target. Nevertheless, its strong performance in Q1 keeps it ahead of its year-to-date target by 21,655 tonnes. The 5% increase in recycling is driven by steady demand for packaging film, PET bottles, and post-consumer pots, tubs, and trays. However, recent softening in PRN prices might influence future volumes.

Despite underwhelming data, Wood remains in a strong position, comfortably ahead of its targets. The significant drop in supply has not raised immediate concerns about meeting the increased recycling targets set for this year, ensuring a stable outlook for the grade.

Our team remains committed to navigating market fluctuations and ensuring quality recycling evidence for our clients. If you would like to discuss the latest PRN data further with a member of our expert team, please feel free to reach out to us utilising the form below.