Targets stay the same whilst PRN prices plummet

Posted on Monday, November 8th, 2010 at 10:45 am

Those who follow the PRN (Packaging Recovery Notes) value of recovered glass will have noticed a dramatic fall in recent months. At the time of writing (November 8 2010) it may have plummeted to as little as £4.75 per tonne, its lowest level in years. A further decline is certainly on the cards.
It will therefore come as no surprise that the price that can be commanded for cullet (recovered glass) has also fallen significantly. Unlike other packaging materials, a large percentage of the value of glass is linked to its PRN value, and the fall in PRN value has prompted the fall in the price for the recovered glass.
With the news that Defra has announced that it would not be raising glass packaging recycling targets from the current figure of 81% for 2011 and 2012, this situation looks set to continue for the foreseeable future. Some commentators have even suggested the possibility of charging to remove glass.
“Of course we are having to react accordingly to this unexpected PRN drop, “ says Berryman’s General Manager, Mick Keogh.
But because there is an increasing differential between the price of mixed glass and glass of individual colours, particularly clear and amber glass, he advises suppliers to look very carefully at the quality of the material they are offering.
“Now is a good time to review the way you recover and sort your glass packaging, and there is a particularly good case for colour separation.”

Those who follow the PRN (Packaging Recovery Notes) value of recovered glass will have noticed a dramatic fall in recent months. At the time of writing (November 8 2010) it may have plummeted to as little as £4.75 per tonne, its lowest level in years. A further decline is certainly on the cards.

It will therefore come as no surprise that the price that can be commanded for cullet (recovered glass) has also fallen significantly. Unlike other packaging materials, a large percentage of the value of glass is linked to its PRN value, and the fall in PRN value has prompted the fall in the price for the recovered glass.

With the news that Defra has announced that it would not be raising glass packaging recycling targets from the current figure of 81% for 2011 and 2012, this situation looks set to continue for the foreseeable future. Some commentators have even suggested the possibility of charging to remove glass.

“Of course we are having to react accordingly to this unexpected PRN drop, “ says Berryman’s General Manager, Mick Keogh.

But because there is an increasing differential between the price of mixed glass and glass of individual colours, particularly clear and amber glass, he advises suppliers to look very carefully at the quality of the material they are offering.

“Now is a good time to review the way you recover and sort your glass packaging, and there is a particularly good case for colour separation.”


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