What is the price indices for pulp and paper industry
Price indices are used to evaluate the dynamics of pulp and paper products price movement.*Pulp and paper products
Price indices benefits
Use the indices as a compass, a tool for orienting where the price is moving on the market.
Time-saving
Use the indices instead of constant renegotiation of contracts and tenders.
Market overview 360°
Price dynamics in the form of an interactive chart for the calendar year.
Reliability of indicators
CSS verifies the data provided for indices calculation.
Transparency
Analytical center checks indices methology.
How the indies are formed
To form a price index, participating companies transmit data on the actual prices of real transactions to the analytical center. Analysts check the data. If the data is in doubt, for example, does not match the data provided by the other side of the transaction, the analytical center contacts the participating company to confirm the data. Only confirmed data will be accepted for calculation.
Signing an agreement
On information interaction between the participating company and the analytical center.
Appointment of a designated employee
The participating company appoints a designated employee for publishing data on the platform of the analytical center. .
Registration on the platform
After registering on the platform, the designated employee gets access to the personal account.
Weekly publication
The designated employee uploads price data every week based on the actual transactions.
Collection and protection of data
Prices are stored as distributed records using crypto-encryption on several servers, ensuring digital data protection.
Data checking
If the data has significant statistical deviations, the CSS employee can query the designated employee or request a document confirming the reliability of the data..
Weekly Indices
The indices values calculation is carried out according to the weighted arithmetic mean method, which considers the weight coefficient of the participating companies.
Monthly Indices
Based on the weekly indices values, the monthly indices are calculated. The calculation is carried out according to the arithmetic mean method.
Indices Participants
Participants are enterprises that enter into an agreement with the analytical agency: containerboard and corrugated board manufacturers. Thus, the purchase prices and the sale prices for the same transactions, but from different independent sources, are provided to form the price indices.
Index
participants
Questions and answers
How is the participant's weight determined?
The participant's weight is recalculated annually and directly depends on the volume of sales in the domestic market in thousands of tons per year.
| Wastepaper processors | Производители гофропродукции | Weight |
|---|---|---|
| Sales | Purchases |
|
| Under 50 | Under 20 | 1 |
| 51-100 | 21-40 | 2 |
| 101-150 | 41-60 | 3 |
| 151-200 | 61-80 | 4 |
| 201-250 | 81-100 | 5 |
| 251-300 | 101-120 | 6 |
| 301-350 | 121-140 | 7 |
| 351-400 | 141-160 | 8 |
| 401-450 | 161-180 | 9 |
| Up 450 | Up 181 | 10 |
Which companies on the market are or can become participants of the indices?
Requirements for the data accepted for the calculation of the price indices
- Ex-warehouse of the supplier, EXW (Incoterms).
- The data provided reflects the weighted average selling price for the previous week.
- All prices are given without VAT
- Terms of payment in cash, without restrictions (prepayment, postpayment, factoring).
- Data submission period: from Monday to 12:00 Tuesday each week.
What data is not accepted?
- Directly dependent on the index (equated to it).
- Corresponding to the price lists or any other prices that are not the actual sale or purchase prices.
- Transactions between affiliates.
- Futures contracts.
- Barter and offset transactions.
Data representativeness
Index validation and audit
Formation and administration of the index
The Center of System Solutions (CSS) is an industry-specific analytical agency for the pulp and paper industry (PPI). On a regular basis, the CSS publishes price indices for the main types of pulp and paper products.
CSS develops various analytical products: marketing research, compiling and developing databases on the Russian pulp and paper market, etc. CSS clients are the largest companies in the Russian and global pulp and paper industries.