The Environment Agency has published the first official packaging obligation data for the UK.
This data shows the UK has reduced its obligations compared with the final 2016 obligations, however the 2017 data excludes around 500 producers who are yet to register. Combined with the finalised Q1 PRN production data, this appears to show the UK is on track to supply its PRN obligation for 2017. All materials reached 25% of their requirements. Plastic, the most volatile material in 2017, enjoyed a surplus of 3%.
Since the beginning of 2017 plastic PRN prices have risen to around £50, with exports, container shortages and Chinese recycling policy having a negative effect on prices. Will this latest news cause prices to fall?
In theory, we should see a softening of plastic PRN prices and no further pressure on the other markets. However, strong supply figures have yet to have an impact on the plastic PRN prices with suppliers holding out for higher prices. The monthly PRN production data could reflect a different picture.
The graph above shows the varied production data in the first four months of 2017 in the plastic PRN market. March was an exceptional month, doubling the previous month and ensuring we hit quarterly targets. It could be argued that as the prices climbed more plastic became commercially viable to supply, however the high prices still exist and April production levels fell almost as low as January. Regardless of the reasons behind this fall in April production data, it adds weight to prices remaining at this high point for a longer period.
Essentially low, stable prices in all other materials with prices remaining high in the plastic market for the remainder of Q2.
To discuss how this news may affect your packaging compliance, please contact our team on 0333 4330 370 or email firstname.lastname@example.org.
Key account manager
As key account manager Richard helps our largest clients manage their legal obligations under Packaging, WEEE and Batteries legislation. His background in economics helps our members manage their budgets and strategically procure evidence.
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