Platts to not reflect non-EU qualified material in its European LSFO cargo assessments

After in-depth engagement with market participants, S&P Global Platts will not reflect non-EU Qualified material in its Market on Close assessment process relating to the European low sulfur fuel oil markets.

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

The original proposal note published on Feb. 3, 2021 can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/020321-platts-proposes-to-publish-bidsoffers-for-non-eu-qualified-material-in-its-european-lsfo-cargo-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.

However, the often large value differential between EU Qualified material and non-EU Qualified material presented a major challenge for incorporating non-EU Qualified cargoes into Platts EU Qualified assessments at this time.

Under this decision, Platts European LSFO assessments would continue to only reflect EU qualified material in the Platts MOC for the assessments mentioned above.

Platts will continue to monitor the evolving non-EU Qualified LSFO market in order to ascertain whether this could be incorporated into Platts assessments at a later date.

Please send any comments or questions to europe_products@spglobal.com and pricegroup@spglobal.com.

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.