Paper PRN price soars to 20-year high

Prices for paper packaging recovery notes (PRNs) and export (PERNs) have soared beyond £30 this month for the first time since 2002 largely on the back of difficulties in the export market.

The increased cost of paper PRNs comes amid a general rise in the cost of PRNs for all materials. This comes against a background of rising concern about meeting 2022 compliance targets for packaging recycling and recovery.

Sector observers see the market as “tight” with one saying that the market is “sailing close to the wind” as the UK looks to meet compliance targets. However, other compliance specialists have suggested that obligated businesses and compliance schemes have “no need to panic”.

While paper is on track to hit its target this year, with provisional data showing 52% of the target has been reached in the first half of the year, it is not in as strong a position as normal.

At the same time in 2021, paper was 68% towards its target, and was at 60% the year before. Both years also had greater volumes of carry-over material. The high paper PRN prices come as the price paid for recovered paper continues to fall.

Earlier this month, recyclers warned that declining prices were driven by a fall in demand across the board.