Platts to change underlying component assessment, update underlying weightings for Platts Global Recycled Packaging Index in 2025

Platts, part of S&P Global Commodity Insights, will change an underlying component assessment used in the Platts Global Recycled Packaging Index [ARPGI00], and update the component weightings, effective Jan. 2, 2025.

For the underlying components used in the calculation of the index, the Platts Recycled PP black pellets DDP NWE Daily (ARPEA00) assessment will be replaced by the Recycled PP natural pellets DDP NWE Daily (ARPEB00) assessment. This follows prevailing market observations that recycled propylene (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 here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102524-platts-proposes-to-change-an-underlying-component-assessment-in-the-platts-global-recycled-packaging-index

In addition, the revised weightings for 2025 reflect an update in the market value of the components, following a review conducted by Platts. The market values of the components are 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:

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 polypropylene (PP) and polyethylene (PE) used in food packaging and manufacturing processing, respectively.

Full details about the calculations and methodology of the index can befound in the Global Commodity Indices Specifications Guide at: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_commodity_indices.pdf?utm_medium=homepage/.

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