Plastic PRN market set to remain volatile during 2013

Packaging

June 2013

There are a couple of factors that are currently affecting the plastic PRN market.

Firstly, the Chinese government launched an initiative called ‘Operation Green Fence’ earlier this year which aims to enforce stricter quality requirements to reduce the amount of lower quality waste entering the country. The initiative is expected to run until at least December 2013. With less waste plastic being exported to China for reprocessing, there is a decrease in the amount of PRNs available, causing the price of PRNs to increase. Thus, this year PRN prices have increased considerably by £40-50 per tonne when compared to Q1 prices.

Secondly, in the UK, the government-set recycling targets for plastic started increasing this year to 37% and are going to be increasing annually, set to reach 57% by 2017. This contributes to the problem of decreasing supply and increasing demand. Overall, this is likely to affect the cost of collecting recycled material and therefore will also be an influence on the PRN market rates.