Recovered Paper

The Recovered Paper (RP) marketplace provides the RP sector with a secure and regulated environment for trading the best quality Recovered Paper at the best available prices.


Participants can place anonymous bids and offers over the phone using a market operator, or interactively via the website on t2e’s online trading platform. t2e administers the entire transaction and settlement process, as well as offering dispute resolution services, if required. Participants can access historic, spot and forward-price information at any time by logging into the website or contacting their dedicated market operator.

How it works

For any order, if all the variables (except quantity) match with a counter order, a transaction will occur and a contract will be issued. Where payment terms cover a range, the contract will always specify the mutually acceptable option.

For a Collected Contract, an offer can only trade with a bid if the Collection Facility (specified by the seller) is within the maximum road miles from the Nominated Location (specified by the buyer). For a Delivered Contract bids and offers can only trade at the same Nominated delivery port. Once a transaction takes place, t2e administers the settlement process, keeping both parties informed at all times.

Collected Contracts

Collected Contracts allow buyers and sellers to trade Recovered Paper ex-works throughout the UK.

Fixed criteria: The buyer is responsible for:

  • Paying within the contracted timetable
  • Arranging transport to arrive at the agreed collection time

The seller is responsible for:

  • The quality and quantity of each load
  • Loading the transport at the agreed collection time

Contract variables:

  • Quantity – expressed in loads
  • Price – collected cost per tonne (ex-works) in Pound Stirling (£)
  • Market – spot and 13 Forward Markets (specified in International Calendar Weeks ISO8601)
  • Loads – High cube or standard (24 tonnes) containers, light (20 tonnes) containers, walking floor trailer (23 tonnes)
  • Packing – Baled or loose
  • Expiry date – the default is 28 days if not otherwise specified
  • Location – Nominated Location (buyers); Registered Collection Facilities (sellers)
  • Road miles – Specified by buyer – maximum distance from a Nominated Location with in which they are willing to buy
  • Payment terms – Immediate or deferred payment (15, 30, 45 days from Settlement Date)
Order
When the order is placed, t2e sends out an Order Confirmation Notice. By default, an order expires after 28 calendar days. Prior to trading, participants can modify or cancel the order if wished.
Transaction
When the order transacts, a Transaction Confirmation Notice confirming contract and deposit details is sent to both parties. For both the buyer and seller this is the VAT invoice for the contract.
Settlement
On the Settlement Date, 3 trading days after the Transaction Date, cleared funds are due at t2e from the buyer for the Deposit and Settlement Amount. On receipt a Settlement Advice Notice is sent to introduce the buyer to the seller.
Collection
Counter parties must agree Collection Time(s) within the Collection Week, which runs for 7 calendar days after the Settlement Date. t2e must be copied in to this correspondence.
For every load collected, the seller must supply Loading Evidence to the buyer and copy in t2e.
Once t2e has received Loading Evidence for all loads in the contract, t2e will pay Contract Proceeds to the seller as long as the seller has a Bond, if not, 10% of the Transaction Consideration will be retained by t2e as a deposit.
Quality Confirmation
Within 5 days of Date of Arrival at the Final Destination*, the buyer sends a Post Inspection Notification confirming quality and quantity or a Dispute is raised based on Unloading Evidence.
If no Dispute is raised, the Deposit plus interest at 0.5% below base are returned to both parties.
Completion
Once cleared funds from t2e returning the Deposits adjusted as appropriate arrive at both counterparties or their Bonds, the contract is complete.
*If t2e is not informed of Date of Arrival, Deemed Date of Arrival is then used.

Delivered Contracts

Delivered Contracts allow buyers and sellers to trade Recovered Paper delivered to ports throughout the world.

Fixed criteria: The buyer is responsible for:

  • Paying within the contracted timetable
  • Collection of material from port and clearing it through customs

The seller is responsible for:

  • Arranging transport to deliver the load CIF according to the rules defined in INCOTERMS 2010 at the agreed delivery time and destination
  • The quality and quantity of each load

Contract variables:

  • Quantity – Expressed in loads
  • Price – Delivered cost per tonne in US Dollars ($)
  • Market – Spot and 26 Forward Markets (specified in International Calendar Weeks ISO8601)
  • Loads – High cube or standard (24 tonnes), light (20 tonnes) containers
  • Packing – Baled
  • Expiry date – The default is 28 days if not otherwise specified
  • Location – Nominated ports
  • Payment methods – Electronic transfer, letter of credit or standby letter of credit
Order
When the order is placed, t2e sends out an Order Confirmation Notice. By default, an order expires after 28 calendar days. Prior to trading, participants can modify or cancel the order if wished.
Transaction
When the order transacts, a Transaction Confirmation Notice confirming contract and deposit details is sent to both parties. For both the buyer and seller this is the VAT invoice for the contract.
Deposit
If no Bond is in place, cleared funds for the Deposit are due at t2e from both buyer and seller within 3 trading days of the Transaction Date.
Shipping
After loading the seller provides t2e with Loading Evidence*. On shipping the seller sends two originals of the Bill of Lading to t2e. Once the Deposits have cleared and the Settlement Amount is secured, one of the Bill of Lading is sent to the buyer.
Settlement
The buyer must arrange for the Settlement Amount to arrive on the Settlement Date, the Friday prior to the Delivery Week. If a Standby Letter of Credit is in place funds must be transferred electronically.
Delivery
On receipt of the Settlement Amount as cleared funds from buyer, t2e will pay the Cntract Proceeds to the seller. The buyer will be able to collect the delivered load(s) on presentation of the Bill of Lading sent by t2e.
Quality Confirmation
Within 14 days of the Date of Arrival at the Delivery Port, the buyer must collect the load(s), clear them through customs and send a Post Inspection Notification confirming quality and quantity or a Dispute is raised based on Unloading Evidence.
Completion
Once cleared funds from t2e returning the Deposits adjusted as appropriate arrive at both counterparties or their Bonds, the contract is complete.
*To include packing list, photographs and weighbridge tickets.

Participants

For more information on participants, or to join, contact the Trading Team on 0131 473 2337 or email paper@t2e.co.uk

Join over 400 other members now and experience complete control over the PRN process:

Complete price transparency


Enabling you to benchmark the true cost of PRNs, track market trends and review performance.

Swift and accurate settlement


Saving you time and effort on administration and processing.

Comprehensive market intelligence


Giving you a clear view, live PRN prices and recent trades. Enabling you to react quickly and confidently to market fluctuations.

Dedicated account management


Supporting you through every stage of the process and keeping you proactively up-to-date with the latest market information.

See what others say about t2e


Contact us


The Environment Exchange
Hudson House
8 Albany Street
EDINBURGH
EH1 3QB
United Kingdom

General enquiries

Phone: +44 (0) 131 473 2330
e-mail: info@t2e.co.uk

Trading

Phone: 0844 800 9943
Fax: +44 (0) 131 473 2326

To join

Phone: +44 (0)131 473 2330
Fax: +44 (0) 131 473 2326

Settlement

Phone: +44 (0)131 473 2327

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