Chemicals, Solvents & Intermediates, Olefins, Polymers

January 02, 2025

Platts changes underlying component assessment, updates weightings for 2025 Platts Global Recycled Packaging Index

Platts, part of S&P Global Commodity Insights, has changed an underlying component assessment used in the Platts Global Recycled Packaging Index (ARPGI00) and updated the component weightings, effective Jan. 2.

For the underlying components used in the calculation of the index, the Platts Recycled PP black pellets DDP NWE Daily (ARPEA00) assessment has been replaced with the Recycled PP natural pellets DDP NWE Daily (ARPEB00) assessment. This follows prevailing market observations that recycled polypropylene (PP) natural pellets are now considered more representative of the recycled PP market due to changing dynamics.

The proposal to change the underlying component was first published in an Oct. 25, 2024 subscriber note, with the decision published in a Dec. 3, 2024 subscriber note.

Additionally, the revised weightings for 2025 reflect an update in the market value of the components, following a review conducted by Platts. Market value of the components is approximated by the product of the latest global production or consumption volume of the commodity and its latest two-year average price.

The weightings are reviewed annually to keep the index representative of global supply and demand trends.

The updated component assessments and their respective weightings for 2025 will be as follows:

Assessment Code Unit Assessment frequency Weighting
Recycled PET clear flakes FD NWE Daily AAVKX00 Eur/mt Daily 5.84%
Recycled PET clear flakes FOB SE Asia RPTSE00 $/mt Daily 3.29%
Recycled-PET Clear Packaging Grade Flake FOB Chicago ACPGA00 cents/lb Daily 5.10%
Recycled HDPE natural pellets FD NWE Daily ARHNP00 Eur/mt Daily 36.58%
Recycled PP natural pellets DDP NWE Daily ARPEB00 Eur/mt Daily 28.46%
US Alum UBCs AAFCD00 cents/lb Monday & Thursday 20.73%

The Platts Global Recycled Packaging Index is a daily weighted average of Platts physical price assessments, in $/mt, reflecting key recycled materials used in the consumer packaging sector. This includes used beverage cans, recycled polyethylene terephthalate (PET) used in plastic bottles and recycled PP and polyethylene (PE) used in food packaging and manufacturing processing, respectively.

Full details on the calculations and methodology of the index can be found in the Global Commodity Indices Specifications Guide.

Please send any feedback or questions to pricegroup@spglobal.com.

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