PRICING NOTICE: Open consultation on methodology for Asia’s recovered paper and packaging paper and board; Proposal to reclassify US and European mixed paper in Asia into two sub-grades –

Fastmarkets RISI invited feedback from the industry on the pricing methodologies for Asia - Recovered Paper and Asia - Packaging Paper and Board, as part of its announced annual methodology review process.

This consultation, which was open until May 21st, sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This included all elements of our pricing process, our price specifications and publication frequency.

At the same time, Fastmarkets RISI was proposing to reclassify mixed paper imported from the USA and Europe to Asia into two sub-grades, premium and standard, to reflect the market situation.

According to feedback from stakeholders, Fastmarkets RISI has decided to re-classify US mixed paper into the two sub-grades:

The premium grade – has a contamination level of below 2% and higher content of old corrugated containers up to 30%.

The standard grade – has a contamination level of more than 2%.

European mixed paper imports have now met the requirement of having contamination level of below 2% and are thus reclassified as European premium mixed paper.

Currently mixed paper imports are sold mainly in India and countries in Southeast Asia, with a wide price range.

The reclassification is aimed at narrowing the range via specifying the sub-grades and assessing prices for each of them.

No feedback on Asia – Packaging Paper and Board was received during the consultation period and therefore no changes will be made to the methodology for the grade at this stage, apart from those changes outlined above.

Assessments for the three mixed paper grades will be launched on July 2 and published in PPI Asia and UM Paper.

You can find the current methodology for Asia – Recovered Paper and Asia - Packaging Paper and Board here, https://www.risiinfo.com/approach/methodology/price-assessment-methodology/

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