NOVELTY - A pellet is produced by forming a waste feed stream comprising a polymer component A comprising greater than or equal to 25 wt.% of a plastic film component B having a cross sectional area (A) to length (L) ratio of less than 0.2 and greater than or equal to 20 wt.% of a cellulose component C. The waste stream is pelletized such that at least part of component B is converted to molten plastic component D having A/L ratio of greater than or equal to 0.2 by chemical and/or heat treatment. The pellet has less than 15 wt.% component B and in which component D, if heat treated, is derived from component B which has been no more than partially melted.    USE - Method for producing a pellet for preparing into finely ground particles used as a fuel source (claimed) for power generation or other industrial applications.    ADVANTAGE - The method involves can utilize industrial and domestic waste that contains plastic and cellulose particles to be efficiently and effectively converted into a pellet which can be ground into a fuel/reduction source with good combustibility/reduction and flow properties. Through controlling the proportion of plastic film component above a minimum level, pellets of good grindability can be produced in an energy efficient manner. The inherent heat transfer properties of the cellulose component enables heat to penetrate throughout the pellet, thus enabling a more uniform partial melting of the plastic film component. Hence, plastic film component can be effectively reduced without the use of an excessive energy input.    DETAILED DESCRIPTION - Production of a pellet comprises forming a waste feed stream comprising a polymer component A comprising greater than or equal to 25 wt.% of a plastic film component B having a cross sectional area (A) to length (L) ratio of less than 0.2 and greater than or equal to 20 wt.% of a cellulose component C, relative to the total weight of the waste stream. The waste stream is pelletized using a pelletizing device such that at least part of component B is converted to molten plastic component D having A/L ratio of greater than or equal to 0.2 by chemical and/or heat treatment. The pellet has less than 15 wt.% component B relative to the total weight of the pellet and in which component D, if heat treated, is derived from component B which has been no more than partially melted. INDEPENDENT CLAIMS are included for:    (1) a pellet; and    (2) a method of preparing a finely ground particles, comprising grinding a pellet.