Progress Against the Recycling Targets: January 2024 PRN Data

The review of the latest Environment Agency (EA) dataset for January 2024 provides valuable insights into UK packaging reprocessing. As we explore the data across the various grades, from Paper and Board to Glass, Aluminium, Steel, Plastic, and Wood, a nuanced picture emerges. While some grades continue to build momentum from the previous year, others grapple with logistical challenges, such as the ongoing disruptions in the Red Sea region.

As is customary with monthly recycling data, it’s crucial to acknowledge that some reprocessors and exporters are yet to submit their data. This can have a significant impact on tracking the progress of each grade towards their respective targets, we will have a full picture of progress towards recycling targets in January and the official 2024 carryover figures upon the release of the final quarterly data report, usually released in March.

In January, Paper and Board recycling produced 229,629 Packaging Recovery Notes, representing a 10% decrease in volumes compared to January 2023. This decline is not unexpected, given the transportation and shipping disruptions stemming from the recent turmoil in the Red Sea.

It’s noteworthy that the carryover for this grade in 2023 for 2024 is significantly stronger than the carryover from 2022 however, we won’t know the official carryover figures until the Q4 data is released for the 2023 compliance year in late March.

Although the UK glass recycling target was met in 2023, Glass experienced a decline in PRN volumes produced in January 2024 compared to January 2023, with a combined total of 61,700 PRNs generated in January 2024 versus 107,216 generated for the same period last year.

According to the 2023 obligation, this places the Glass category 66,454 units behind year-to-date requirements however, due to this data report being voluntary these figures may not reflect the actual production rate of Glass PRNs. Once the final quarterly data is released, we will have a better understanding of the final production levels of the 2023 compliance year and most importantly, the carryover figures for 2024

Throughout 2023, Aluminium showcased a robust performance, with carryover volumes from 2023 into 2024 projected to increase significantly compared to the carryover from 2022 into 2023, as previously mentioned the official carryover figures will not be available until the final data release for the 2023 compliance year.

In January, Aluminium continued its consistent performance, with 6,965 PRNs produced, representing a slight decrease (-1,561) compared to January 2023.

Utilising the 2023 obligation, this would place Aluminium 5,286t behind year-to-date requirements for 2024 however, these figures may reflect a lack of reporting rather than a lack of production.

January’s monthly data revealed promising results for Steel, demonstrating an impressive 87% increase in production compared to the same period last year (13,687 in January 2024 vs 7,305 in January 2023).

Plastic volumes continued to exhibit growth in January, with 75,078 PRNs generated, up from 52,425 (+22,653) in January 2023. Following a robust and consistent performance throughout 2023, the grade appears to have maintained its momentum into 2024, remaining stable as we enter the new year. However, it is important to acknowledge that disruptions in the Red Sea region could potentially affect market availability and production capacity as exported tonnages are delayed.

Wood production remained highly consistent year over year, with 14,709 PRNs in January, compared to 13,847 (+862) during the same period last year. Despite a slight drop in production, carryover volumes from 2023 into 2024 are expected to increase compared to the previous carryover from 2022 into 2023. This increase is particularly encouraging in light of the escalating wood recycling targets. However, as previously mentioned this will not be confirmed until the release of the final quarterly data in March.

Chris Taylor, Director of Operations at Clarity commented the following on the latest data release:

“January 2024 data presents a mixed picture. While Paper and Board experienced a slight decrease in PRN volumes, attributed to transportation disruptions, its potential strong carryover from 2023 into 2024 indicates resilience in the face of export challenges.

Caution should be exercised when interpreting the lower production levels indicated for January, as they will, in places, likely be influenced by underreporting rather than a reflection of real recycling rates. This caution stems from the fact that the primary data available is based on voluntary submissions from reprocessors and exporters.

Ongoing issues in the Red Sea region continue to impact PRN availability which impacts pricing, this situation requires continuous review as it will potentially impact the market well into 2024.

Overall, while challenges persist, the industry demonstrates resilience and potential for growth in the coming months. Driving packaging recycling as intended.”

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