The UK is on track to meet its 2008 EU targets for packaging recycling as prices for recovered materials begin to stabilise following a recent downturn.

However, the Government’s Advisory Committee on Packaging will review 2009 targets as concerns remain over the volatile market. Roy Hathaway, Head of Waste Regulation at the Department for Environment, Food and Rural Affairs, has therefore sent for a letter to packaging producer compliance schemes to collate data on forecasted packaging sales for each material.

According to the recycled materials pricing guide published in December 2008 by Letsrecycle.com, metal prices increased by £10-40/t, and mixed paper went from no value to £5-8 in the period from November to December 2008.

This follows dramatic drops in the prices of recovered paper, plastics and steel in October and November 2008 in response to the global economic cooldown and decreasing demand from the construction and automotive industries. China’s decision to ban imports of mixed plastics waste exacerbated the situation and raised concerns that recycling levels in the UK would plummet.

The UK’s Local Government Association (LGA) has written to local councils asking them to continue with the same levels of recycling, and has agreed to return landfill tax proceeds to them to invest in facilities that offer higher quality, more marketable materials.

A survey by the LGA found that 95% of local authority services are continuing as normal and that only five per cent are storing recyclable material for longer than usual until the market improves. This is despite reports in the national press (Daily Mail, 5 January 2009) suggesting that local councils could face immense waste storage bills in coming months.

‘Materials of varying quality are attracting lower prices because more effort and expense has to go into sorting and cleaning them,’ explains Liz Goodwin, CEO of WRAP. ‘The positive result is that quality material is more valuable. It is moving at good volumes.’

The Waste & Resources Action Programme has launched an online advice forum for local authorities. The organisation notes that falling oil prices are reducing the costs of virgin plastics, making recovered plastic less appealing in the short term.

Further information:

Letsrecycle

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Local Government Association