Jun 25 2007
“Both domestic and international markets have an important part to play in providing sustainable and environmentally sound outlets for recovered materials.” This was the proposition under discussion at the first forum hosted by WRAP (Waste & Resources Action Programme) to explore the role of international markets in responsible materials recycling.
The forum was prompted by the growing interest in the role of export markets, their long term stability and the standards of reprocessing in the recipient countries. Roy Hathaway, Deputy Director of Defra’s Wastes Management Division, opened the debate and guest speakers included Liz Parkes, Head of Waste at the Environment Agency; Mike Jefferson, Director of Operations at Valpak and Jeff Chan, Marketing manager of MLM Ltd, trading as ACN Europe (UK). Input from the Local Authority Recycling Advisory Committee (LARAC) was given by Alison Butler, Waste Policy Manager, Vale Royal Borough Council.
As the UK’s foremost recycling advisory organisation, WRAP is taking a lead role in instigating discussion among the key players, including policy makers, legislators, exporters and importers. Speaking at the event, WRAP’s Chief Executive Liz Goodwin said:
“Quality is the cornerstone of effective recycling. It is essential that all those involved work together to continuously improve standards. While strong domestic markets are a priority, export markets will continue to be an important route for internationally traded materials. It is essential that any exports of recycled materials are legal and transparent: this is the key to establishing long term sustainable markets and maintaining public confidence.”
Centre of expertise
WRAP’s aim is to provide a centre for expertise1 on international markets, ensuring that recyclers and reprocessors have a single source of reliable and independent information on which to base commercial decisions. Liz Goodwin explained:
“As recycling rates increase, there is a collective responsibility for all those involved to find sustainable and environmentally sound outlets for recovered materials. Selecting the best practical environmental option can only be achieved based on robust data and WRAP wants to ensure that the information is available for people to make an informed judgement.”
As part of this remit WRAP has commissioned in-depth research into export markets for recovered materials. The findings of three reports – on glass, paper and plastics – were presented during the forum.
Assessment of the International Trading Markets for Recycled Glass revealed that Intra-Europe trade of cullet makes economic and environmental sense but the case for export outside of Europe – although it provides greater CO2 savings than domestic aggregates use – is currently more marginal from an economic perspective.
Domestic use in the manufacture of glass fibre insulation is environmentally and economically attractive but export and fibre use together may still not be able to absorb all the additional glass collected, meaning that alternative markets will continue to need to be developed. However, where cullet is used in aggregates there is a cost in terms of missed environmental benefit.
The Assessment of the UK Export Market for Recovered Paper projected that UK collections of RCF (recovered fibre) will grow by 20 per cent over the period to 2015, from 8 million tonnes to over 10 million tonnes. Given the high level of RCF utilisation by UK paper mills and the continuing contraction in the paper manufacturing sector, it is likely that all the additional fibre collected (and perhaps more) will be exported, leading RCF exports from the UK to grow from 4 million tonnes to around 6 million tonnes.
Almost half of UK’s exports currently are to China, and this share is likely to grow further in line with the projected growth of the Chinese market. A key challenge for the UK in both its domestic and export markets for paper is to achieve a sustainable supply of quality materials.
Recycled Plastics: UK Supply and Demand predicts that UK collections of recovered plastic packaging are likely to double between 2005 and 2015 to reach 800,000 tonnes a year. In 2006, the UK exported 440,000 tonnes of plastics with a value of £95 million. At least two thirds of the packaging plastics collected were exported.
Strong overseas demand for plastics and high oil prices (hence virgin polymer prices) have led to increases in recovered polymer prices which have made it more difficult for domestic reprocessors to compete and, as with paper, developments in the global market for recovered polymers are likely to be heavily influenced by conditions in China.