Steel recycling rate recorded notable rise in Q2 2016, says latest data

By Carolina Curiel (ScrapMonster Author)

July 26, 2016 05:28:12 AM

EDGWARE (Scrap Monster): The latest provisional data released by the Environment Agency (EA) indicates that steel packaging recycling rate remained buoyant during the second quarter of the current year.

The data is a clear indication of the success and failure of producers to meet their overall obligation to recycle packaging. The database also provides information on the quantity of packaging waste exported and recycled during the three-month period from April to June this year. The data is critical as it gives an indication of how the packaging recovery note (PRN) market is likely to remain during the rest of the current year.

The amount of steel packaging recycled during the second quarter of the year surged higher by over 26% from 94,785 tonnes in Q1 to 119,556 tonnes during second quarter of 2016. The steel packaging recycling totaled 214,341 tonnes during the first half of the year. Steel recycling volumes have already met 58.7% of the yearly obligation of 364,689 tonnes. The high recycling rate indicates that the closure of several British steel mills has not materially impacted the recycled volumes. According to industry experts, the surge in steel packaging recycling is mainly attributed to strong export volumes during the period. Consequently, Steel PRN prices have dropped to levels of nearly £15 per tonne.

The other categories of materials have also performed well during Q2 this year. The paper packaging recycling rate dropped marginally from 1.007 million tonnes during Q1 to 925,210 tonnes during Q2. The recycling data suggests that 70% of the yearly obligation has been met during the first half of the year.

Aluminum recycling rate remained stable during the second quarter at 22,156 tonnes. The rate had stood at 22,602 tonnes during Q1 this year. Aluminum recycling rate has met 53.9% of the 2016 full-year obligation. The boost in recycling rate is mainly on account of the recent changes in protocols adopted by the Environment Agency.

The plastic packaging recycling rate increased marginally from 246,427 tonnes during Q1 to 259,409 tonnes during Q2 this year. The recycling data suggests that 52.4% of the yearly obligation has been met during the initial six-month period of the year.

Wood packaging recycling rate soared significantly during the second quarter to 111,698 tonnes. The rate had stood at 85,802 tonnes during Q1 this year. Wood packaging recycling topped the list by achieving 79% of the 2016 obligation.

The only material category that failed to meet the recycling rate when compared with the yearly target was glass aggregate. However, glass recycling rate recorded marginal increase during the second quarter when compared with the previous quarter. The amount of glass aggregate accepted or exported during Q2 this year totaled 397,225 tonnes, higher when matched with the figures of 377,044 tonnes during Q1. Glass recycling has met only 48.2% of the 2016 obligation. Meantime, industry experts noted that third quarter of the year has proved to be historically strong for glass. The increased recycling rate during the third and fourth quarters could enable glass packaging recycling rate to achieve the yearly obligation.

About Environment Agency

The Environment Agency (EA) is a non-departmental public body, established in 1996 and sponsored by the United Kingdom government's Department for Environment, Food and Rural Affairs (DEFRA), with responsibilities relating to the protection and enhancement of the environment in England.