The Gap Between Current Pricing Indices and Actual Transactions
After numerous interviews with buyers, sellers and traders of recycled fiber in North America, we’ve heard the same recurring complaint – there is a lack of actionable information on the US market. Current available pricing indices have created frustrations among its users with its survey-based methods as many feel there is a lack in consistency in the numbers being reported versus the numbers they are actually seeing.
Specifically, we have heard across the industry:
- Existing price indices do not reflect underlying market dynamics.
- Benchmarks do not accurately reflect differences in geography, product quality or format.
- Current conditions do not enable reliable benchmarking for one’s own selling or buying activities.
Why is there such a lack of transparency in market pricing?
Indices that use a survey-based method typically receive their data from calling around to producers, suppliers and third-party buyers and asking for information on prices. The problem with this survey-based method is that the information is not quantitative, and there is no proof or validation of the prices they are being told and then reporting. While this method certainly can help shine some light on price trends, a gap of systematic, reliable data exists. Additionally, using a survey-based method to gather and report data on prices in the market can encourage bias depending on who’s responding to the survey. Therefore, the entire process risks becoming more like a discussion than formal data reporting.
Recycled Fiber 360 Provides You with Reliable Transaction Data
Recycled Fiber 360 is a transaction-based recycled fiber price benchmark built specifically to help the industry reduce uncertainty and cancel out unreliable noise in the market. This product is based on actual transactional sales data and doesn’t rely on the interpretation of qualitative research. As a result, customers are able to receive reliable and transparent information on the price movements occurring in the recycled fiber index for various desired regions.
Unlike other data reporting solutions, Recycled Fiber 360 uses a ‘give to get’ model for participants. Only users of the platform have access to this updated monthly information on actual transaction data. This way, we can provide top quality data that is unavailable anywhere else. The data found in Recycled Fiber 360 is also aggregated, confidential and anonymized – ensuring that your sensitive information isn’t being shared or accessible to anyone else.
To learn more about Recycled Fiber 360 and look at a couple hypothetical market examples to gain a better understanding of how our benchmark provides users transparent data that can be used to negotiate fiber prices, download the white paper below.
Source: Fisher International
