ICIS introduces Asia recycled polypropylene price index

The Singapore office of London-based Independent Commodity Intelligence Services (ICIS) has introduced a pricing index for recycled polypropylene (rPP) in Asia.

“This new service will support the industry’s shift toward more sustainable and circular economy models, reinforcing ICIS’ dedication to bringing transparency to circular plastics markets and providing customers with the tools needed to make well-informed decisions,” ICIS says.

The service will track six spot pellet assessments for natural-colored and black grades of rPP in the Association of Southeast Asian Nations (ASEAN) region.

“Cost structures and market drivers of circular plastics differ significantly from virgin equivalents, and markets are hard to track, predict and understand,” ICIS senior editor Arianne Perez says. “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 pricing because they serve different end users.

“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.”

ICIS says Asia is an emerging and pivotal market, drawing new investments and establishing itself as a leading exporter of rPP in response to the growing demand for recycled materials spurred by consumer, regulatory and investor pressures for a shift towards a circular economy.

It notes that buyers can “grapple with grasping the financial nuances of shifting from virgin PP to recycled PP, while sellers struggle with pricing benchmarks, contract negotiations and the evaluation of opportunities for production growth or new investments.”

The new index joins others created by ICIS, including price benchmarks for recycled polyethylene terephthalate, rPP and recycled polyethylene in Europe and the United States.

More information on recycled-content plastic pricing services offered by ICIS can be found here.