This consultation was done as part of our published annual methodology review process. No formal feedback was received during the consultation period and therefore Fastmarkets will proceed with the following proposed changes.
Following extensive market research, Fastmarkets proposed to launch new assessments for bleached and unbleached European sack kraft to provide assessments that are more in line with actual market prices. The existing assessments will be archived after running in parallel with the new assessments for a period to allow stakeholders to adjust to the new price assessments. During this period, a fixed differential established at the launch will be applied between the existing and the new assessments.
The proposed specifications for European sack kraft are as follows:
- European sack kraft, bleached and unbleached paper, 80-g+
- Location: France, Germany, Italy, Spain and the United Kingdom
- Incoterm: Free delivered to the buyer’s facility
- Timing: Orders taken in the month to date for shipment in the current month or the following month
- Unit: Tonne
- Currency: Euro, Pound
- Quantity: Minimum 100 tonnes
- Payment terms: Assume normal and customary payment terms.
- Price Type: Open-market transactions in ongoing supply relationships (i.e., excluding spot transactions). Transfers between affiliates are also excluded.
- Assessment Type: Range price assessment
- Publication: Quarterly.
- Notes: Prices are for prime-quality tonnage with normal trims.
The launch will take place on January 30, 2025. The existing price series will be discontinued in January 2026.
Fastmarkets has compiled a list of frequently asked questions to accompany the new price launch. These can be found here: https://www.fastmarkets.com/uploads/2024/10/European-sack-kraf-faqs-Final.pdf.
This consultation 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 includes all elements of our pricing process, our price specifications and publication frequency.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Ben Fisher by email at: pricing@fastmarkets.com.
Please add the subject heading ‘FAO: Ben Fisher, re: European Sack Kraft’. Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology/forest-products.
