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Will fall in PRN plastic prices hit recycling market?

Date: Tue, 24 Nov 2015 | Author: Paul Sanderson

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PRNs remained the main story in the recycling market last week and how they might impact on the price of the physical market.

Plastic PRNs lost close to around £35 per tonne as a result of various reasons including market nerves and one large company putting more PRNs onto the market.

SCM Environmental director Joe Savage said: “What we didn’t see coming with plastic PRNs was a sudden drop in value, seemingly overnight to the tune of £25.00 or so.

“A perceived large influx of PRNs and increased desire from sellers to clear stocks has caused the price to crash, currently at circa £50.00 but with a view to heading further south. “Naturally this has been welcomed by buyers who can start fulfilling compliance obligations at a point nearer budget, thus bringing final requirements to the table.

“Current sentiment is that the price will drop further, and possibly we’ll see a sub-£30.00 plastic PRN before year-end, if this does indeed happen then it should be good news all round as compliance should be met and buyers will be paying more acceptable fees to achieve this.”

(To read Joe’s full PRN report, see this upcoming Friday’s Intelligence report – take a free trial by emailing paul.sanderson@rebnews.com if you want to receive it for four weeks – terms and conditions apply).

In terms of prices, the fall in the PRN value did not affect bottle prices but it did ease other packaging grades such as film down by £10 per tonne.

Paper prices were largely stable, but multi continued to fall back.

Metals continued to suffer with £125 coming off copper grades, £100 off brass and £25 off aluminium. 

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Category: Recycling
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