S&P Global Platts has decided to launch three new spot FAS US East Coast (USEC) polyethylene assessments, effective February 1, 2022.

The new assessments were originally proposed in a subscriber note published on December 7, 2021 here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/120721-s-p-global-platts-proposes-to-launch-three-new-us-east-coast-polyethylene-assessments.

The assessments will be published on a daily basis and will reflect high-density polyethylene blowmolding (HDPE), general purpose low-density polyethylene (LDPE G-P) and butene linear low density polyethylene (LLDPE).

They will reflect spot values of bagged PE loading 3-30 days forward FAS USEC, normalized to ports of Savannah, Georgia, and Charleston, South Carolina. The assessments will reflect tradable value for typical volumes of 250 mt and larger in a single transaction.

The assessments will be calculated as net forwards from the equivalent FOB Houston prices, taking into account prevailing railcar and bagging costs. Railcar and bagging pricing may also change as the market evolves.

As the spot liquidity in the region increases, Platts will consider spot bids, offers, trades and indicative values pertaining specifically to the US East Coast.

The physical properties of the new PE assessments will mirror the specifications of the US Gulf Coast assessments as follows:

Product Grade MFI

LDPE GP 1.8-2.5

LLDPE Butene -1 1

HDPE Blowmolding 0.25

All assessments will be timestamped at 1.30 pm Central Time and 2.30 Eastern Standard Time.

Alongside the new daily assessments Platts will also start publishing relevant monthly and weekly averages.

Specific assessment codes will be made available prior to Feb. 1.

The new assessments will complement Platts existing suite of polyethylene assessments in the US Gulf Coast. The full list and description of these assessments can be found in the US petrochemicals specifications guide: https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/americas-petrochemicals.pdf.

Please direct any questions or comments to petchems@spglobal.com with a copy to pricegroup@spglobal.com. For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.