S&P Global Platts launches Southeast Asia rHDPE price assessment

S&P Global Platts, a provider of information and benchmark prices for commodities and energy markets, is launching a new daily recycled high-density polyethylene (HDPE) film pellets spot price assessment. S&P Global Platts says it is launching the HDPE film pellets spot price assessment “to meet growing demand for pricing information in the recycled plastic markets in Southeast Asia.”

The introduction of this free on board (FOB) Southeast Asia assessment follows the launch of a recycled polyethylene terephthalate (rPET) clear flakes price assessment in Southeast Asia and adds to existing virgin HDPE price assessments, offering what S&P Global Platts says is “a more complete view of the polyethylene value chain in the region.” The provider also released a U.S. rPET pellet assessment in November.

According to a news release from S&P Global Platts, the introduction of recycled HDPE (r-HDPE) price assessments in Asia complements the company’s existing price assessments for that grade in Europe (postconsumer mixed bales and rHDPE light pellets), offering market participants information across the two regions.

“The addition of this new daily recycled HDPE spot price assessment for Southeast Asia builds on Platts’ strong foundation of virgin polymer benchmark prices across Asia,” says Ben Brooks, head of plastics recycling price reporting at S&P Global Platts. “In what has been a challenging year for recycled plastics in Southeast Asia due to the coronavirus pandemic, the increased transparency brought by this new spot price assessment will provide the industry with an independent view of market value, helping market participants navigate the emerging commodity market and make informed trading decisions.”

Shelley Kerr, global head of petrochemical market pricing at S&P Global Platts, says the new assessment will also help to meet the needs from market participants for high-quality and transparent pricing information for the fast-developing recycled plastics market in Asia. She says, “With increasing consumer demand for recycled plastics and more corporations moving towards green initiatives, demand for recycled plastics will likely pick up and may displace some virgin growth in the long-term."

S&P Global Platts says HDPE is used in a range of consumer products, including shampoo bottles and garbage bags. The new daily rHDPE film pellet FOB Southeast Asia assessment will be published in dollars per metric ton. The assessment will reflect cargo sizes with a minimum of 15 metric tons for loading 15 to 30 days forward from the date of publication from Port Klang in Malaysia, Bangkok in Thailand, Jakarta in Indonesia, Singapore, Batangas in the Philippines and Cat Lai in Vietnam. The provider says the new assessments will follow a Platts market on close (MOC) price assessment methodology, with the daily end-of-day price assessment reflecting values and activity observed in the open physical markets.

For additional details on S&P's methodology, click here.