Platts proposes to include chemicals limits on European 1% fuel oil assessments from July 1

Platts, part of S&P Global Commodity Insights, proposes to include a 500ppm maximum limit on six chemicals in its European 1% fuel oil barge and cargo assessments, effective July 1.

Platts understands that as a result of changing end-user requirements and supply dynamics in the 1% fuel oil market, it has become typical to request chemical limits on different species of chemicals in both Northwest Europe and the Mediterranean.

Platts proposes to include the following limits on chemicals:

The addition of these limits would apply to the following assessments:

FO 1%S CIF Med Cargo PUAAJ00

FO 1%S FOB Med Cargo PUAAK00

FO 1%S CIF NWE Cargo PUAAL00

FO 1%S FOB NWE Cargo PUAAM00

FO 1%S FOB Rdam Barge PUAAP00

Platts understands that requests for limits on Styrene, Indene, Phenols and DCPD have become typical, and that in addition limits on 4-Cumylphenol and Methyl-Styrene are also often requested. Platts understands that testing is carried out via gas chromatography-mass spectrometry meeting ASTM D 7845-17.

Platts understands that while not exhaustive, the above list reflects the chemicals for which maximum limits are most frequently requested, and that elevated levels of other chemicals not listed above may also render product unfit for end use.

Platts reiterates that cargoes sold in the Market On Close (MOC) process should be suitable for end use.

Offers and traded bids of cargoes and barges in the Platts Market on Close assessment process in Europe should meet the above chemical limit and are also expected to meet merchantable standards.

Platts will continue to consider for publication bids and offers for material with limits on chemicals that may differ from those stated above. If published, these may be subject to normalization.

Existing European 1% fuel oil specifications reflected can be found on pages 22 & 23 in the Europe & Africa refined products specification guide: https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/Europe-africa-refined-products-methodology.pdf

This follows a period of informal review and formal consultation, details here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/022525-platts-opens-consultation-on-european-1-fuel-oil-specifications

During the consultation on European 1% Fuel Oil specifications, Platts also sought feedback on its methodology regarding CN Codes. As a result of this review, Platts proposes to maintain its existing methodology surrounding CN Codes.

Platts European and Mediterranean assessments reflect LSFO where the material has been assigned CN code 2707 9999.

Platts is still seeking further feedback on chemicals in the marine fuel markets globally.

Please send any feedback, questions or comments to: europe_products@spglobal.com and pricegroup@spglobal.com by May 16.

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.