Environment

Alupro, the Aluminium Packaging Recycling Organisation, has urged local authorities to stop stockpiling materials as its members are reporting that their deliveries of aluminium drinks cans are being affected.

Alpro says that although aluminium prices have halved from £900 to £450 per tonne in recent weeks, the lower price is still ample to pay for separation and transportation costs.

Executive director Rick Hindley said: "The industry is keen to see recycling deliveries continue at normal levels, and would urge local authorities to support their recyclers by ensuring that collected aluminium cans and foil continue to be sorted and sold for recycling."

Meanwhile, the recent dramatic changes in markets and prices have led the boss of one of Britain's fastest-growing recycling companies to suggest that recyclable processing contracts could share risk and reward more fairly.

Ian Wakelin, chief executive of Greenstar UK, said: "There should be more equable sharing of risk and reward. Some councils may prefer fixed price contracts as they then know what income they will be likely to get for some time ahead. Equally, I know of other authorities who are open to the idea of sharing financial gain – and pain."

He suggested that a price-flexible contract could recognise the preferences of the two partners for sharing the reward from high prices, and sharing the risk from falling prices.

"A risk-averse council could limit the revenue lost in falling markets, balanced by capping the revenue gain it makes when prices rise," said Wakelin.

"A more risk-tolerant council could opt for fuller exposure to the revenue upsides and downsides, perhaps with a higher ceiling and a lower floor."

Greenstar UK manages more than 270,000 tonnes of material a year at 40 facilities throughout the UK. It employs 1,450 people and has a fleet of more than 500 trucks.