COVERAGE NOTE: Changes to US RCP Prices for Exports to China

COVERAGE NOTE: Changes to US RCP Prices for Export to China

In light of China’s planned ban on imports of “unsorted” recyclables such as mixed paper, due to take effect on Dec. 31, RISI is considering the following changes to its recovered paper coverage in PPI Pulp & Paper Week:

  • To discontinue assessments of mixed paper CFR China from Long Beach/Los Angeles and New York/New Jersey (price IDs 11914 and 11884)
  • To change the destination title to Asia of four US mixed paper export prices assessed on a FAS basis, from the destination title of China (price IDs 11886, 11888, 11891, 11912). The Asia destination would include exports to India, South Korea, Thailand, Indonesia, and Vietnam.

These changes may be necessary if US exports of mixed paper to China drop significantly or even stop. In this case, RISI would be unable to maintain reasonable assessments of the value of mixed paper for delivery to China.

The timeline for the proposed changes has yet to be fixed, and it would depend on market developments in 2018. RISI will communicate further on this following consultation with stakeholders. If there is insufficient market data for mixed paper on which to base assessments following the introduction of the import ban, RISI will use limited pricing information and other factors, such as the relative values of similar grades. For more information on RISI’s assessment methodology, please visit https://www.risiinfo.com/approach/methodology/price-assessment-methodology/.

Please send comments to pricing@risi.com, indicating “US RCP Export Prices” in the subject line of the email, by the end of February 2018. RISI will publish its final decision and timeline for any changes as soon as possible after this date.

What to read next
Fastmarkets proposes to amend the name of the MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb to clarify that the price is based on the London Metal Exchange cash aluminium price.
The publication of Fastmarkets’ Vietnamese steel scrap import assessments for Friday June 14 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
In the open consultation, Fastmarkets FOEX did not propose any changes, and there was no feedback received during the process. No material changes were made to the current methodology. A newly dated methodology document has been posted here.
The publication of Fastmarkets’ aluminium scrap and secondary aluminium ingot price assessments for Wednesday June 12 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
The publication of Fastmarkets’ MB-IRO-0186 iron ore DR grade pellet premium indicator for Wednesday June 12 was delayed due to an error in the review process.
Fastmarkets proposes to discontinue its weekly price assessments for AG-UCO-0013 UCO, Chinese flexi-tank, CFR Antwerp, Rotterdam, Amsterdam, and AG-UCO-0012 UCO, Chinese bulk, CIF Antwerp, Rotterdam, Amsterdam.