Platts proposes changes to South American polyolefins assessments

S&P Global Platts is proposing to launch new CFR Mercosur polyolefins assessments, effective April 1, 2022, and to discontinue the existing Free-on-Truck (FOT) Brazil polyolefins assessments, effective July 1, 2022.

The changes would affect high-density polyethylene (HDPE film, injection and blowmolding), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), homopolymer and copolymer of polypropylene. Platts has observed diminishing volume in trade done on an FOT Brazil basis with a sustained shift toward prevalence of delivered incoterms, such as carrier-paid-to (CPT) and cost and freight (CFR). The proposed changes aim at aligning Platts coverage with the current industry standards.

CFR MERCOSUR: Under the proposal, the new assessments would reflect CFR Mercosur deliveries, basis main ports in Paraguay and Uruguay. Platts currently does not observe significant price differentials between the values in these locations and would consider Asuncion and Montevideo ports as par ports. Platts would also consider pricing information pertinent to Argentina deliveries, which would be subject to normalization. Platts would continue collecting information reflecting other incoterms and transportation modes, including by road transport on CPT basis, and may normalize this information to the proposed standard. The normalization would be based on the data collected from the market and tested through the publication of heards on a regular basis. At the moment Platts does not observe a price differential between CPT and CFR prices. The new assessments would reflect material of various origins, including but not limited to Brazil, the US, China, Taiwan, Middle East, South Korea, Egypt, Saudi Arabia etc. The new assessments would reflect parcels of 100-500 mt, delivered at the par ports 20-40 days forward from the day of publication.

FOT BRAZIL: Simultaneously Platts is proposing to discontinue its existing FOT Brazil assessments. These assessments reflect the spot value of Brazil's exports to Paraguay and Uruguay by road transport. The full description of the Americas petrochemicals assessments can be found in the published specifications guide https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/americas-petrochemicals.pdf. The affected assessments can be found on Platts Petrochemical Alert fixed pages PCA (1561), PCA (1557), PCA (1559), PCA (1555), PCA (1554), PCA (1560), PCA (1558), PCA (1556), PCA (0245), PCA (0275), PCA(0267), PCA (0271), PCA (0246), PCA (0283), PCA (0275) on the Platts Dimensions Pro and Platts Market Center, in Polymerscan publication and in the Platts database under the codes listed below:

CODE Mavg Description

PHATX00 PHATY03 HDPE HMW film FOT Brazil

PHATZ00 PHAUA03 HDPE injection FOT Brazil

PHATV00 PHATW03 HDPE blowmolding FOT Brazil

PHAUD00 PHAUE03 LDPE FOT Brazil

PHATT00 PHATU03 LLDPE butene FOT Brazil

PHATL00 PHATM03 PP Co-polymer FOT Brazil

PHATN00 PHATO03 PP Homopolymer FOT Brazil

Please send any comments and questions to petchems@spglobal.com with a copy to pricegroup@spglobal.com by Feb. 28. For written comments, please provide a clear indication if they 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.