S&P Global to launch CFR Mercosur polyolefins assessments, to discontinue FOT Brazil

S&P Global Commodity Insights has decided to launch new CFR Mercosur polyolefins assessments, effective April 6, 2022, and to discontinue the existing Free-on-Truck (FOT) Brazil polyolefins assessments, effective July 1, 2022.

S&P Global first proposed changes to its weekly South American polyolefins assessments in a subscriber note published Dec. 10: https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/021022-S&P Global-proposes-changes-to-south-american-polyolefins-assessments

The changes will affect high-density polyethylene (HDPE film, injection and blowmolding), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), homopolymer and copolymer of polypropylene. S&P Global 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 changes aim at aligning S&P Global coverage with the current industry standards.

CFR MERCOSUR: The new weekly assessments will reflect CFR Mercosur deliveries, basis main ports in Paraguay and Uruguay. S&P Global currently does not observe significant price differentials between the values in these locations and will consider Asuncion and Montevideo ports as par ports. S&P Global will also consider pricing information pertinent to Argentina deliveries, which will be subject to normalization. S&P Global will 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 will be based on the data collected from the market and tested through the publication of heards on a regular basis. S&P Global has not observed a price differential between CPT and CFR prices. The new assessments will 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 will reflect parcels of 100-500 mt, delivered at the par ports 20-40 days forward from the day of publication. The new assessments will mirror the specifications of the existing polyolefins assessments and reflect the following material:

Product MFI/MFR

LDPE 0.1-3.5

LLDPE butene-1 1

HDPE injection 2-25

HDPE film 2-16

HDPE blowmolding 2-16

PP homopolymer 0.8-35

PP copolymer 1.5-25

FOT BRAZIL: S&P Global will 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. For written comments, please provide a clear indication if they are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available upon request.