Recovered materials prices - WRAP's view and planned next steps
WRAP believes that this fall in prices is partly linked to the global economic crisis and that current extremely low prices are likely to be temporary.
We are currently gathering evidence from industry and local authorities and will continue to monitor the situation and to look for both short and long term solutions.
Recovered materials are still a valuable resource and as with other commodities, prices can rise or fall sharply. Even in the current climate, not all commodities are affected. The price paid for glass, for example, continues to remain stable.
A key part of WRAP’s work is the development of sustainable end markets for recovered materials – that is all the paper, glass, cans and bottles that we put out for recycling. Recycling capacity in the UK has increased considerably over the last seven years, much of it with direct support from WRAP. This has included a partnership with Shotton Paper Mill, providing funding for it to convert to using 100% recycled fibre so all newsprint produced in the UK is now made with 100% recovered fibre. We also helped fund Closed Loop London – which makes plastic milk bottles back into plastic milk bottles. Demand for recyclate in the UK remains strong. And what is becoming increasingly clear from WRAP’s market intelligence is that those who have good quality materials to trade are those who are doing the best business. This is true of recovered materials being sold within the UK, as well as those exported abroad.
WRAP is meeting with the Environment Agency, DEFRA and other stakeholders early next week to consider the steps which can be taken to support the market. We will then provide an update on the planned actions by next Friday (17 November).
These low prices will not last forever. Recycling is good for the environment. Material not put out for recycling will go to landfill so it is vital that people continue to use their recycling service and to recycle as many things as possible. These can still be collected and made into new products, helping protect our environment.
Posted 7 November 2008
