Eunomia Chairman Dominic Hogg is speaking today at the Resourcing the Future 2015 Conference hosted by the CIWM, the ESA and the Resource Association.
Dominic will be speaking on the subject of ‘Recyclate Materials and Markets: Trends, Risks and Prices’. The session will cover the technical and market challenges facing the four main dry recyclable streams – paper, plastic, metals and glass.
Dominic will focus on the issue of the impacts of and responses to continued volatility in global commodity markets. He will focus in particular on the use of contractual risk share mechanisms and financial instruments (such as hedging) as a means for local authorities and collection contractors to work together to better manage secondary raw material (SRM) price risk.
Dominic will be speaking on the subject ahead of the publication by Resources & Waste UK, the joint body of the CIWM and ESA, of a report prepared by Eunomia on the same subject. The report will outline why the issue of SRM price risk has become more important in recent years in the context of factors such as:
- a general downward trend in SRM prices from the highs of 2011/12;
- a squeeze on some contract margins for waste management companies; and
- challenging operating conditions for some parts of the UK SRM reprocessing sector.
It will also make recommendations for improving the current approach to managing price risk with a view to:
- helping to create more attractive conditions for investors,
- stimulating UK recycling markets; and
- providing a more stable basis on which the UK can progress towards the longer term ‘circular economy’ goals of resource efficiency and security.