Open consultation on methodology for European Packaging Paper and Board; proposed changes to sack kraft assessments

Fastmarkets is inviting feedback from the industry on the pricing methodology for European Packaging Paper and Board as part of its announced annual methodology review process.

Fastmarkets is inviting feedback from the industry on the pricing methodology for European Packaging Paper and Board as part of its announced annual methodology review process.

This consultation, which is open until August 31, 2024 seeks 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.

You can find the current methodology for European Packaging Paper and Board here: https://www.fastmarkets.com/methodology/forest-products/europe-packaging-paper-and-board/.

As part of this consultation and following discussion with market participants, Fastmarkets would specifically like to propose launching new price assessments for bleached and unbleached European sack kraft.

Following extensive market research, Fastmarkets is proposing this change to provide assessments more in line with actual market prices. The current 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 two assessments.

The proposed specifications for European sack kraft is as follows:

European sack kraft (new)

Quality: Bleached and unbleached paper, 80-g+

Location: France, Germany, Italy, Spain and the United Kingdom

Timing: Orders taken in the month to date for shipment in the current month or the following month

Unit: Tonne

Payment terms: Free delivered

Publication: Quarterly

The consultation period for this proposed launch starts from July 11, 2024 and will end on August 31, 2024. The launch will take place, subject to market feedback, on January 30, 2025.

Fastmarkets will publish the outcome of this methodology review by October 24, 2024, including a summary of the feedback – except those responses marked as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is.

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.risi@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.

What to read next
The publication of Fastmarkets’ aluminium billet North Europe assessments for Friday September 6 was delayed because of reporter error. Fastmarkets’ pricing database has been updated.
Fastmarkets has corrected its MB-MNO-0005 manganese ore high grade port index, fot Tianjin, China, which was published incorrectly on Friday September 6.
The publication of Fastmarkets’ manganese ore seaborne indices for Friday September 6 was delayed due to a technical error. Fastmarkets’ pricing database has been updated.
Fastmarkets has corrected its price assessment for MB-GER-0001 germanium dioxide, in-whs China, $ per kg, which was published incorrectly on Friday September 6.
The publication of MB-STS-0012 UK domestic 5C steel scrap prices for Friday September 6 was delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
After a consultation, Fastmarkets is increasing the publication frequency of its non-exchange-deliverable equivalent-grade (EQ) copper cathode premium, CIF Shanghai, from once a week to twice a week.