ICIS is implementing a process of rolling consultation on all of its pricing methodologies. This consultation paper is part of this formal process and covers all of the ICIS primary price points included in the mixed plastics and pyrolysis oil weekly publications.
The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific mixed plastics and pyrolysis oil market issues.
Click here to view the Mixed Plastics & Pyrolysis Oil Methodology Consultation 2024
Response
ICIS received feedback on the level of liquidity of the pyrolysis market and the naming conventions used by ICIS in its coverage of the market.
The pyrolysis oil price ranges were introduced in October 2023 following extensive research on the qualities available in the marketplace. The specifications are based on what is currently available from sellers. While ICIS is aware that a range of other contaminants can make a difference in usability and final price, there is a current lack of standardization in the market which would mean criteria for these contaminants would be so specific as to exclude most volumes or so broad as to include all qualities. Given the current changeability and experimentation with feedstock input types, contaminant levels can also vary dependent on waste input mix. ICIS plans to introduce further specification criteria as the market develops and standardizes. The naming conventions in the report follow consultation with the market on how grades are commonly referred in the marketplace, although ICIS does recognize that the nascency of the market does mean that there is variation in how grades are named at individual players. Although traded volumes remain limited, and many plants are at pilot or demo stage, traded volumes are spread across a wide number of players. It is the number of players active in the market that has given ICIS confidence in its ability to price this market despite the illiquidity. ICIS speaks to a wide range of sources on mixed plastic waste and pyrolysis oil – including, but not limited to, producers, upgraders, and buyers.
ICIS continues to welcome any feedback on its Mixed Plastics and Pyrolysis Oil methodology outside of the formal consultation process.
To provide further comments or feedback please contact William Lemos, Deputy Editorial Director: William.Lemos@icis.com
