Fastmarkets RISI plans to add corrugated box cost index
This is a “major development” that could affect the decades-old model for monthly corrugated pricing, according to analysts.
The proposed CCB would combine Fastmarkets RISI’s virgin and recycled fiber price data with third-party economic and cost indicators related to labor, energy, chemicals, maintenance, transportation and other factors. Each component would be weighted in the calculation, with manufacturing wages most heavily considered at 26%, followed by repair and maintenance and “other manufacturing costs” tying for second place at 14%, and OCC coming in third at 10%.
Each input for the calculated benchmark would be indexed to a January 2019 baseline of 100 points, and changes would be measured against that.
Fastmarkets RISI plans to add corrugated box cost index | Packaging Dive