On the 15th May the Environment Agency released the first set of packaging handled figures for 2017. These figures allow us to review any increases in obligations and help determine the effect of this year’s target increases. At this early stage obligations are in line with expectations showing little to no variation on last year’s final figures. However, given that producer registrations are currently down by approximately 400 companies, one would expect demand to growth incrementally as those late comers register.
When comparing this year’s demand against early reprocessing figures the market would appear to be well balance with little concern regarding availability. Some market commentators have raised concerns about the current state of play in the Chinese export markets with rumours of a crackdown on low quality material and this has led to some upward pressure on compliance costs for plastic.
- Ian Andrews