Plastic PRN Price Hike
Plastic PRN prices have been rising throughout 2017 but over the last few weeks the pace of such increases has intensified. Prices have increased from £45 to £70 per Plastic PRN with significant volumes being traded.
The increases are the result of concerns from buyers that Plastic will struggle to meet its target recycling obligation in 2017 given the higher recycling target for 2017, combined with the reduced tonnages being exported to China as a result of the ‘National Sword’ operation in China.
The higher Plastic PRN prices will hopefully encourage UK reprocessors to recycle more plastic packaging waste and also enable exporters to either find new overseas markets or improve the quality of the Plastic materials prior to export so that there are no exporting issues based on quality.
The price increases have come despite the lack of hard evidence having been seen in official EA published recycling data to show the UK being behind plastic recycling target levels for the year so far. In fact, on the contrary, the Q1 2017 data was on track and the carryover from 2016 was also pretty strong. A key upcoming date is the 22 July when we will get to see the official EA published Q2 quarterly recycling data. It is clear that prices are already reflecting an anticipated weak Q2 set of data but if the data is really weak it could result in further price hikes.
Comply Direct is putting in every effort possible to get our procurement strategy right for all materials to protect where possible members from large price hikes and additional costs. However, it may well be that 2017 is the year on Plastic when we do finally see a considerably higher average price than in previous years. We will keep you updated with the situation as we move through 2017. If you have any questions or would like to talk through the PRN market conditions in relation to your own obligation then please don’t hesitate to contact a member of the packaging team at firstname.lastname@example.org