S&P Global Platts has launched a daily spot price assessment for U.S. recycled polyethylene terephthalate (rPET) food-grade pellets. This new assessment joins price assessments covering the entire PET chain, from virgin PET assessments on the U.S. West Coast through all stages of the PET recycling chain, including bales and flakes.
The assessment will reflect clear rPET pellets traded on the U.S. West Coast normalized to a free on board (FOB) Los Angeles basis, for loading three to 30 days forward. The assessment will reflect spot transactions with a typical volume size of one to five truckloads (approximately 40,000 to 200,000 pounds), according to a news release from S&P Global Platts announcing the new assessment. In the absence of market indications, a pricing formula will be used that includes the rPET flake price as the base level plus a premium to account for variable costs associated with food-grade pellet production, the company adds. Material should have an intrinsic viscosity of between 0.76 and 0.82 and a polyvinyl chloride content no higher than 10 parts per million (ppm). Acetaldehyde levels should not exceed 1 ppm.
The assessments will be published in Polymerscan on Platts Market Center, the Petrochemical Service on the Platts Platform and on Platts Petrochemical Alert pages PCA 624, PCA 574, PCA 441 and under the following symbols:
- AFGPA00 Recycled PET Food Grade Pellets FOB Los Angeles cts/lb;
- AFGPA04 Recycled PET Food Grade Pellets FOB Los Angeles cts/lb WAvg;
- AFGPA03 Recycled PET Food Grade Pellets FOB Los Angeles cts/lb MAvg;
- AFGPB00 Recycled PET Food Grade Pellets FOB Los Angeles $/mt;
- AFGPB04 Recycled PET Food Grade Pellets FOB Los Angeles $/mt WAvg; and
- AFGPB03 Recycled PET Food Grade Pellets FOB Los Angeles $/mt MAvg.
Additionally, a weekly market commentary for the recycled PET markets will be published each Wednesday on PCA page 1542. The daily rationale will be published on PCA 1545.
More information on Platts methodology is available here.
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Platts says it will consider all comments it receives and will make comments not marked as confidential available upon request.