Platts launches three new US East Coast polyethylene assessments

S&P Global Platts has launched three new spot FAS US East Coast (USEC) polyethylene assessments, effective Feb. 1, 2022, to provide transparency into the growing export market out of this region.

Platts has started assessing on a daily basis high-density polyethylene blowmolding (HDPE), general purpose low-density polyethylene (LDPE G-P) and butene linear low density polyethylene (LLDPE).

The new assessments 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 reflect tradable value for typical volumes of 250 mt and larger in a single transaction.

The new assessments are calculated as net forwards from the equivalent FAS Houston prices, taking into account prevailing railcar and bagging costs.

As the spot liquidity in the region increases, Platts may consider in future assessing the USEC prices independently, based on bids, offers, trades and indicative values pertaining specifically to the US EC. Platts would consult the market on any future changes through its usual means of communications. Railcar and bagging pricing may also change as the market evolves.

The physical properties of the new PE assessments mirror the specifications of the USG assessments and are as follows:

Product Grade MFI

LDPE GP 1.8-2.5

LLDPE Butene-1 1

HDPE Blowmolding 0.25

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

Alongside the new daily assessments Platts has also launched relevant monthly and weekly averages.

Over the past few years Platts has observed a sustained growth in polyethylene exports out of the US and a geographical diversification of ports able to handle these exports. US EC ports in particular have been developing packaging and logistical infrastructure and building storage facilities to provide alternative export routes to polymer exporters to Europe, Africa, Latin America and other destinations. Charleston and Savannah are currently estimated to be in the top five polymer exporting ports in the US.

The new assessments complement Platts existing suite of polyethylene assessments in the US Gulf. 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.

The new assessments are published on the Platts Petrochemical Alert fixed pages 572, on Platts Dimensions Pro, in the Platts Market Center, in Polymerscan, and in the Platts database under the following codes:

Assessment Code WAvg MAvg

HDPE BM FAS US East Coast $/mt AFASC00 AFASC04 AFASC03

LDPE G-P FAS US East Coast $/mt AFASA00 AFASA04 AFASA03

LLDPE Butene FAS US East Coast $/mt AFASB00 AFASB04 AFASB03

Please send any comments and questions to petchems@spglobal.com with a copy to pricegroup@spglobal.com.

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