S&P Global launches CFR Mercosur polyolefins assessments

S&P Global Commodity Insights launched CFR Mercosur polyolefins assessments, effective April 6, 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

S&P Global has also decided to discontinue the existing Free-on-Truck (FOT) Brazil polyolefins assessments, effective July 1, 2022. These assessments reflect the spot value of Brazil's exports to Paraguay and Uruguay by road transport.

The changes 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 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.

The new weekly assessments 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 considers Asuncion and Montevideo ports as par ports.

S&P Global also considers pricing information pertinent to Argentina deliveries, which is subject to normalization.

S&P Global continues 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 is 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 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 reflect parcels of 100-500 mt, delivered at the par ports 20-40 days forward from the day of publication. The new assessments 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

The new CFR Mercosur assessments are published on the 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:

Symbol Description

HDCAC03 HDPE B/Mldg CFR Mercosur MAvg

HDCAC00 HDPE B/Mldg CFR Mercosur Weekly

HDCAB03 HDPE Film CFR Mercosur MAvg

HDCAB00 HDPE Film CFR Mercosur Weekly

HDCAA03 HDPE Inj CFR Mercosur MAvg

HDCAA00 HDPE Inj CFR Mercosur Weekly

LDCAA03 LDPE CFR Mercosur MAvg

LDCAA00 LDPE CFR Mercosur Weekly

LDCAB03 LLDPE Butene CFR Mercosur MAvg

LDCAB00 LLDPE Butene CFR Mercosur Weekly

PPCSB03 PP Copol CFR Mercosur MAvg

PPCSB00 PP Copol CFR Mercosur Weekly

PPCSA03 PP Homo CFR Mercosur MAvg

PPCSA00 PP Homo CFR Mercosur Weekly

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