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AWM and cost based pricing

At AWM we aim to provide all our clients, regardless of size, the most market competitive prices at all times.

Whilst we continue to develop new processes and improve our operational efficiency, we have also recently developed a process that improves our ability to accurately cost waste materials on a continual basis. Taking account of the latest commodity prices and optimising treatment routes, benefits are passed on to clients.

Through rebates and subsidized treatment charges AWM ensures the value of recoverable commodities is returned to clients. In other words, we are aiming to provide accurate prices for every collection, taking account of material type, volume, recoverable content and chemical profile. With a gross margin never exceeding 15% we are confident, when it comes to recycling we will always offer best value.

From next month the price review will take place quarterly. This will not affect contracted prices or long-term agreements.

WEEE Impact
Already we can see the impact of dynamic pricing. In the first quarter of the trial WEEE provides a great example of how the model works. Due to the recent increase in demand for scrap metals and strengthening of key commodity prices we have immediately been able to pass on the benefit to our clients for many electrical and electronic waste streams.

WEEE collections dip in second quarter

Collection volumes of waste electrical and electronic equipment (WEEE) measured in tonnes have fallen in the second quarter of 2017 compared to the same period 12 months earlier, figures published by the Environment Agency suggest.

And, the data suggests that overall, compliance schemes appear to be falling behind the required collection rate needed to meet the targets set by the government to fulfil producer recycling obligations by the end of the year.

Failing to meet the targets could mean that some schemes would have to pay a ‘compliance fee’ in order to meet their obligations at the end of the year.

The provisional data, which was published on the Environment Agency’s website in September, suggests that a total of 133,000 tonnes of household WEEE was collected for recycling in the months April to June 2017, compared to around 150,000 tonnes collected during the same period in 2016.


Quality demand puts pressure on UK

Recyclers of paper and plastics are continuing to watch the situation in China closely with regard to the country’s proposed tighter quality controls.

China has recently closed a consultation on a new standard for the export of materials to the country for recycling. In particular, the standards will impact on used cardboard, mixed papers (typically collected from a household) and also plastic films, often used to wrap goods for retailers and industry.

Some in the recycling sector are calling for the UK government to get involved but others consider that this will be difficult to do as the UK is just one of many countries impacted by the tighter controls.

Others in the sector feel that it is about time that the quality of material sent for export is improved and that the UK has been lax in its approach.

Prices for the materials involved reduced in September and further falls are on the cards. Currently the markets are in a nervous state although there are expectations that prices for some grades of material could actually rise as others fall. Domestic prices for cardboard in China are rising and pulp prices are also on the increase.