ICIS launches Asia recycled PP pricing to propel circular economy opportunities
02 Apr 2024 --- Independent Commodity Intelligence Services (ICIS) has unveiled its new pricing index for recycled polypropylene (rPP) in Asia to foster a circular economy model and address industry challenges.
The new service offered by ICIS will track six spot pellet assessments for natural and black grades across the Asian region. This move comes amid a burgeoning demand for recycled materials driven by consumer, regulatory and investor pressures.
As Asia emerges as a critical market and exporter of rPP, the need for transparency and reliable data becomes paramount. ICIS details that the industry faces challenges such as market opacity, fragmentation and the need for reliable data amid the expansion of rPP in Asia into new end-use applications, including the packaging of FMCGs and automotive parts.
“Cost structures and market drivers of circular plastics differ significantly from virgin equivalents and markets are hard to track, predict and understand. Buyers can no longer use virgin values as a predictor for recycling markets. Two grades of the same recycled material can currently see a substantial difference in the pricing because they serve different end-users,” shares Arianne Perez, senior editor for Recycling at ICIS.
Furthermore, the commodity intelligence provider shares that buyers and sellers encounter difficulties understanding the financial dynamics of transitioning from virgin PP to recycled PP. With the new pricing index, ICIS aims to provide stakeholders with the necessary insights to navigate this evolving landscape.
ICIS details that the industry faces challenges such as market opacity, fragmentation and the need for reliable data amid the expansion of rPP in Asia.Market transparency
Launching the ICIS rPP pricing index in Asia complements the existing datasets and tools that provide intelligence on recycled markets across Asia, Europe and the US.
ICIS’ recycling supply trackers, pyrolysis oil pricing indexes and recycled polyolefins analytics represent an advancement in the company’s circular plastics initiatives, addressing pricing fluctuations and sourcing complexities.
“ICIS is taking a strategic step to address these challenges in the rPP market. By pricing rPP in Asia, we are providing buyers and sellers with the necessary insights to navigate this evolving landscape efficiently. It brings transparency into contract negotiations and enhances ICIS’ unparalleled portfolio of recycled plastics market intelligence, designed to support the industry’s shift toward circular economy models,” underlines Perez.
With ICIS’ latest move, stakeholders in the plastics industry can now access data to support their transition toward sustainable practices, reinforcing the company’s commitment to driving positive change within the sector.
Regarding data and sustainability, Packaging Insights recently spoke to Matthew Wright, CEO and founder of Specright, about how its Specification Data Management platform could help packagers make sense of packaging data gathered throughout the value chain to optimize design and tie-up packaging waste loopholes.
Edited by Radhika Sikaria
