Q&A Pricing Methodology

QUESTIONS & ANSWERS SUMMARY - Re the SMP Index Operating Procedure

What is the Historical background of the SMP INDEX?
-    The Online concept of ‘Secondary Fiber Pricing.com’ (SFP), and ‘Secondary Materials Pricing.com’ (SMP)  was developed in 2002
-    The prime objective in launching the Index was to give the Recycling Industry an ‘INDEPENDENT’, Online cost-effective medium, allowing companies to ‘Freely Participate’ in the reporting and publishing of Current and Historical Market Data - for all parties.  Membership includes  Generators (Cities, Counties, Industry), Recyclers, Haulers, Consultants, Buyers, and Sellers of Post-Consumer Recyclable Materials.
-    Pricing Formats now operate on the RecyclingMarkets.net site (‘About Us’ background available on site)
-    Between 2002-2013,  both brands were ‘marketed’ and available on WASTE NEWS.com (Closed  2013)

Which companies participate in providing Pricing Information?
-    The KEY Price Providers are Consumers (i.e. End Users / Processors)
-    In recent  years, pricing  input has been expanded, to include major Recycling Centers and Waste Haulers
-    This provides a balance of weekly data from BOTH Buyers (Prices being Paid), and Sellers (Prices Received)
-    Materials generators do not participate (i.e. Government, Industry)

WHY should Companies become ‘QUALIFIED PRICE PROVIDERS’, and participate in the Index?
-    The #1 reason to participate, is to have a ‘Representative VOTE’ in what is being published each week
-    ALL COMPANIES are invited to participate in Price Reporting (requires minimal time to respond to emails)
-    By participating, companies have no reason to ‘complain’ about the Published Prices, or the SMP Index
-    Greater participation provides a more transparent report on the market, and reliable Historical data

How do Companies participate in Pricing Information?
-    Companies are always “invited” to participate as “QUALIFIED PRICE PROVIDERS”
-    A separate confidential account is established for each provider, who then report online
-    Wherever possible, we request  ‘tonnage handled data’ (monthly / annual) to assist with weekly comparative analysis decisions, when required
-    The identity of Price Providers remains confidential, and is never discussed
-    All price submissions are provided electronically, by e-mail – to a weekly grid format (Takes only minutes)
-    Reports include: Provider Company Data, ‘Current’ Prices Paid by Grade & Region, vs ‘Published’ Price
-    No Changes?.....Providers respond to a ‘No Changes’ button - indicating current pricing is still in effect

How often are prices updated?
-    Prices are updated as follows:
a)    Every Friday throughout the year
b)    Opening Prices each month (on the 2nd business day of the month)
c)    Closing Prices each month (on the last day of the month, except on Sundays)

Is participation ‘confidential’?
-    All pricing reports and commentaries are treated as confidential
-    The list of Qualified Price Providers is confidential, and not made available or discussed
-    This general rule has been effective, and trusted by the Industry for over 15 years

Does the Index have any affiliation with the Recycling and Solid Waste Industry?
-    The Index is fully Independent, with no official ties to Industry
-    All pricing reports are treated objectively
-    The Index is Membership based (Annual Subscription)
-    Price providers are not allowed to advertise

How do you come up with your Weekly Prices?
-    All weekly price reports are reviewed and analyzed objectively (Recommended Prices  vs Current prices)
-    The objective is to maintain margins closer to the reported Median price (discounting outlier prices)
-    Weighted volumes are taken into account when required (and when available)
-    Price providers are rarely contacted (only by exception  - for general market input)
-    Written ‘market commentary’ is always welcome

Do you maintain Volume Criteria on Price Providers?
-    As a general policy, Monthly/Annual volumes Purchased/Sold are requested from Price Providers
-    This information often assists in ongoing decision-making relative to price ranges and market conditions

Do you follow ongoing Industry Material Specifications?
-    We have always worked with the related Associations, i.e. APR, ISRI, NAPCOR in following current Industry Guidelines and Grade Specifications, as well as discussing how the SMP INDEX can evolve, and better serve the Industry.
-    Current Industry Grade Specifications are posted on the site, with direct links on the Price pages
-    Members rely on this information, as a vital educational tool in their contractual agreements

How do you work with the Recycling & Solid Waste Industry?
-    Throughout the year, and as part of Membership - we assist hundreds of callers, mostly Members from all sectors, requesting ongoing information, including the markets, grade specifications, and understanding the Recycling Industry, including the process from materials origin to the end-market

-    We view the SMP INDEX as an ongoing ‘Reflection of the Post-Consumer Market’, and as a REFERENCE GUIDE to what is happening – and NOT the Actual Market

-    Above all, we continue an ongoing dialogue with all sectors of the Industry, including Consultants, Generators, Haulers, Consumers - in maintaining a ‘Simple’, transparent INDEX that provides Reliable, ‘Historical’, Relevant Market Data to all - at a reasonable Annual Membership rate

For more information, contact:

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Tel: 330.956.8911