Price Assessment

Platts Asia Recycled HDPE Assessments

  • What are Asia Recycled HDPE price assessments?
  • How we assess Asian Recycled HDPE prices
  • Asian Recycled HDPE Weekly Commentary
  • Asian Recycled HDPE Daily Rationale

What are Asia Recycled HDPE price assessments?

Platts recycled high density polyethylene FOB spot assessment covers film grade clear pellets in Southeast Asia and complements Platts existing virgin PE assessments in Asia.

The spot assessment has the following specification:

Grade: Film grade clear, transparent and natural colored pellets suitable for consumer packaging applications

Cargo size and basis: Minimum 15 mt for loading 15-30 days forward from the date of publication, from Port Klang in Malaysia, Bangkok in Thailand, Jakarta in Indonesia, Singapore, Batangas in Philippines and Cat Lai in Vietnam.

Price information on loadings from other ports within Southeast Asia may be taken into consideration and normalized to the basis ports for the assessment.

The assessment reflects standard market payment terms. Typical market payment terms are on a telegraphic transfer basis, with a 30% deposit and the rest of the payment on arrival.

Platts takes into consideration price information gathered up to the close of the Platts Market on Close assessment process at 4:30 pm Singapore time (0830 GMT).

The price assessment is complemented by a daily rationale and weekly commentary, which explains how the price assessment is reached and delves into the market fundamentals observed throughout the week.

How we assess Asian Recycled HDPE prices

Platts assessments are based on market information, including, but not limited to, firm bids and offers, and trades reported to the editor up to the close of business (4.30 pm Singapore time) on each day.

All the information used to inform the assessment is published transparently on Platts platforms as "heards". An assessment rationale is published explaining what the assessments are and how they have been reached.

A weekly market commentary accompanies the price assessments and rationale, which highlights the most important trends that have affected the markets that week and provides insight into what the market expects over the coming weeks.

Asian Recycled HDPE Weekly Commentary

  • Natural grade at a premium to coloured recycled resin
  • Recycling low due to a lack of workers in pandemic

Asian recycled high density polyethylene film was assessed up in the week to Jan. 19 due to tight supply.

Recycled scrap remained scarce, resulting in snug supply. Local waste collection was low due to the poor quality of scrap, and a lack of workers in the pandemic, sources said.

Prices of recycled resin remained in a wide range, as the scattered pricing in Southeast Asia was also due to different labor costs in each country, sources said.

Although post industrial waste was regarded as higher quality compared with post-consumer waste, traders said the price difference would be negated if the quality of regrind recycled resin through both processes were similar.

The premium for natural to colored pellets was more than $200/mt, according to market sources. Colored, especially black recycled pellets, were heard at around $600-$800/mt, much lower compared with the translucent or natural ones, had more availability and coincided with black pipe grades at lower prices, according to sources.

Price differences were also a result of processing problems, with the uncolored material being much easier to handle, compounders said. However, there was no color standardization for natural recycled color, and two samples with similar lab readings could look visually different, sources said.

Asian Recycled HDPE Daily Rationale

Asian recycled high density polyethylene clear film pellets were assessed up $10/mt from the previous session at $1,080/mt FOB Southeast Asia Jan. 21, on tight supply.

The intraday value was uncontested.

This rationale applies to symbol < PHALH00>

Daily prices can be found on <PCA709>

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