Platts proposes to publish bids/offers for non-EU qualified material in its European LSFO cargo assessments

In light of evolving market conditions in Europe's low sulfur fuel oil market, S&P Global Platts proposes to publish bids and offers for non-EU qualified material in the Platts Market on Close assessment process, effective April 1, 2021.

This proposal applies to Platts Fuel Oil 1.0% Cargoes CIF Med (PUAAJ00) and Fuel Oil 1.0% Cargoes FOB NWE (PUAAM00) assessments.

Platts understands that demand for non-EU qualified material within Europe has increased as a result of the lower sulfur cap regulation implemented by the International Maritime Organization on Jan. 1, 2020, and has become more merchantable within the region.

Under the proposal, Platts European LSFO assessments would continue to reflect EU qualified material, but Platts would also publish bids and offers for non-EU qualified material in the Platts MOC for the assessments mentioned above.

In its MOC process, Platts bids, offers and trades for cargoes that do not stipulate being EU qualified, will be assumed to allow for the delivery of non-EU qualified material, and may be subject to normalization back to the standard.

Please send feedback and comments to europe_products@spglobal.com and pricegroup@spglobal.com by Feb. 26, 2021.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.