Price volatility continues to be caused by changes in Chinese recycling policy, which is heavily suppressing the amount of export PRNs that are generated by recycling activities in China.
Historically China has produced 40-50% of our PRN requirement through PERNs (see the Plastics Market Situation Report by WRAP). Now China has indicated that they will ban waste PET from 2018 onwards, it is likely to cause disruption to the UK achieving its 2018 and 2017 targets as approximately 46% of post-consumer plastics are PET.
Although the policy won’t come into force until 2018, it will affect the final quarter of 2017 as recyclers race to get material to China before the beginning of 2018 to generate PERNs.
During the recent RWM conference, some took the view that this issue would not be quickly fixed, but the UK had an opportunity to invest and plug the gap left by China. On the 14 September Defra also indicated that it will be looking at ways to support an increase in UK recycling capacity.
Ecosurety will be actively working to realise this potential, through supporting recycling campaigns across its Circularety platform, collaborating with environmental charity Hubbub and engaging in partnerships with producers and recyclers to drive UK recycling.
Quarter four invoices for Ecosurety members will be released at the end of September and we will be helping our members to budget throughout this volatile period.
If you’d like to speak to someone about your PRN obligations, do get in touch by emailing email@example.com or call our specialists on 0333 4330 370.
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.
The Environment Bill was due to be reported on in early December, the last step before it is voted on in the House of Commons.Read More >>
The BPF has released their strategy to dramatically reduce the exporting rate of scrap plastic from the UK within the next 10 years.Read More >>
The House of Commons Library research service have released a useful and comprehensive briefing paper that outlines the current and future governmental strategies for dealing with plastic waste.Read More >>