S&P Global Commodity Insights Launches India's First Price Assessment for R-PET

Rhea-AI Summary

S&P Global Commodity Insights announced the launch of India's first price assessment for recycled polyethylene terephthalate flakes (R-PET) on April 3, 2023. This new assessment aims to improve transparency in pricing amid a rise in demand for recycled plastics. The price assessment will augment Platts' existing R-PET offerings in Europe, the U.S., and Southeast Asia. A recent market study indicated significant growth in India’s plastic recycling capacity, with exports of R-PET flakes quadrupling year-on-year to approximately 10,000 metric tons as of November 2022. The FOB South-Asia assessment will follow a rigorous pricing methodology, reflecting market values determined by buyers and sellers. This initiative is expected to enhance informed trading decisions and support growth in the South Asian recycled plastics market.

Positive

• Launch of India's first R-PET price assessment boosts market transparency.
• Exports of R-PET flakes increased four-fold year-on-year, indicating robust market growth.
• Independent pricing information may facilitate informed trading decisions.

Negative

• None.

Driving transparency and growth in South Asia recycled plastics market

SINGAPORE, April 13, 2023 /PRNewswire/ -- S&P Global Commodity Insights, the leading independent provider of information, analysis and benchmark prices for the commodities and energy markets, announced on April 3 the launch of India's first price assessment by Platts for recycled polyethylene terephthalate flakes (R-PET) to bring greater transparency to pricing, especially with recycled plastics demand rising amidst global energy transition efforts. The launch of the new free-on-board (FOB) India R-PET price assessment further augments Platts' pre-existing suite of R-PET offerings, which includes price assessments in Europe, U.S. and Southeast Asia.

Vanessa Ronsisvalle, regional pricing director, Asia petrochemicals, S&P Global Commodity Insights, said: "The new Platts FOB India R-PET price assessment will help meet a growing need from market participants for high-quality, transparent pricing information for this fast-developing export market in Asia. By providing an independent view of its market value, the increased transparency will help participants make informed trading decisions and spur the growth of a nascent recycled PET market in South Asia. We believe the marketplace will find Platts pricing information of critical value to the development of the Indian recycled plastics market, as it becomes increasingly commoditized."

A comprehensive market research conducted by Platts showed robust growth in India's plastic recycling capacity in the organized sector, where large volumes are being exported. A deep dive into India's customs data showed the country's exports were approximately 10,000 metric tons from January to November 2022, reflecting a four-fold jump year on year. India's emergence as an exporter of R-PET flakes coincides with the continued rise in global environmental sustainability concerns and ambitions, which has big brands announcing aggressive targets for the use of recycled materials in their packaging globally.

The new daily FOB South-Asia assessment reflects a recycled PET flakes quality specification based on an intrinsic viscosity (IV) level of 0.72 – 0.78, PVC content of less than 30 parts per million (ppm), and 100% clear in color.

The new assessments will be underpinned by the rigorous Platts Market-On-Close (MOC) price assessment methodology, which produces a daily end-of-day value that reflects prices as determined by buyers and sellers in the open physical markets.

See subscriber note. For additional details, consult this methodology and specifications guidelines page.

For additional information on the R-PET price assessments, contact (petchems@spglobal.com). More petrochemicals information can also be found at: https://www.spglobal.com/platts/en/commodities/petrochemicals.

Media Contacts:
Global/EMEA: Paul Sandell, +44 7816 180039, paul.sandell@spglobal.com 
Americas: Kathleen Tanzy, + 1917 331 4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, + 65 68189 7569, melissa.tan@spglobal.com 

About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value. 

We are a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts^® products and services, including the most significant benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. 

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.

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SOURCE S&P Global Commodity Insights

FAQ

What is the significance of the new R-PET price assessment launched by SPGI?

The new R-PET price assessment enhances pricing transparency for the growing recycled plastics market in India, facilitating better trading decisions.

When was the R-PET price assessment launched by S&P Global?

The R-PET price assessment was launched on April 3, 2023.

How much did India's R-PET exports grow year-on-year?

India's R-PET exports grew four-fold year-on-year, reaching approximately 10,000 metric tons by November 2022.

What does the new pricing assessment include?

The assessment includes specific quality specifications and reflects a daily end-of-day value determined by market participants.

Why is the R-PET price assessment important for South Asia?

It meets the demand for transparent pricing in a rapidly expanding recycled plastics market, making it crucial for industry participants.