Platts proposes to launch CFR Indonesia and CFR Vietnam sulphuric acid assessments; proposes change to CFR Southeast Asia sulphuric acid assessment June 26

Platts, part of S&P Global Commodity Insights, proposes to launch two new sulphuric acid assessments, CFR Indonesia and CFR Vietnam, effective June 26, 2024.

The new proposed assessments would add further granularity to Platts sulphuric acid coverage in the region. Platts has observed a divergence in regional prices and changes in buying patterns between Indonesia and Vietnam, including an increase of sulphuric acid flowing to Indonesia for use in metals production and processing in addition to the existing fertilizer usage.

Details of the proposed CFR Indonesia sulphuric acid weekly assessment are as follows:

• CFR Indonesia, spot, $/mt
• Quality: Sulphur burner acid, smelter acid
• Quantity: Minimum 6,000 mt
• Basis and location: CFR Indonesia, basis Bahodopi port, Indonesia. In the absence of representative CFR Indonesia price information, Platts may also refer to other ports or prices in relevant destinations/origins and use prevailing spot freight rates for assessment purposes.
• Timing: Product to be delivered three to eight weeks forward
• Frequency: Weekly, every Wednesday
• Appears in: Sulphuric Acid Market Report
• Unit of assessment: $/mt
• Timestamp: 1630 Penang close, published according to the Penang publishing calendar

Details of the proposed CFR Vietnam sulphuric acid weekly assessment are as follows:

• CFR Vietnam, spot, $/mt
• Quality: Sulphur burner acid, smelter acid
• Quantity: Minimum 6,000 mt
• Basis and location: CFR Vietnam, basis Haiphong port, Vietnam. In the absence of representative CFR Vietnam price information, Platts may also refer to other ports or prices in relevant destinations/origins and use prevailing spot freight rates for assessment purposes.
• Timing: Product to be delivered three to eight weeks forward
• Frequency: Weekly, every Wednesday
• Appears in: Sulphuric Acid Market Report
• Units of assessment: $/mt
• Timestamp: 1630 Penang close, published according to the Penang publishing calendar

Simultaneously, Platts proposes changes to its existing Sulphuric Acid CFR Southeast Asia weekly assessment (FSASA04), effective June 26, 2024.

Platts proposes to remove Malaysia and Thailand as basis locations from the CFR Southeast Asia assessment, as buyers in these locations usually source their requirements through term contracts, rather than the spot market.

As such the assessment would reflect market value on a CFR Indonesia and Vietnam basis, as defined above, with the range determined purely by the two new assessments outlined above.

For example, if CFR Indonesia was assessed at $55/mt and CFR Vietnam at $50/mt, the CFR Southeast Asia range would be published as $50-$55/mt.

Following the above proposed amendment, only ports in Indonesia and Vietnam would be considered for the CFR Southeast Asia assessment. Malaysia and Thailand would no longer be considered as the basis for the CFR Southeast Asia assessment.

The revised CFR Southeast Asia sulphuric acid assessment would reflect the following specifications:

• CFR Southeast Asia (FSASA04), spot, $/mt
• Frequency: Weekly, every Wednesday
• Appears in: Sulphuric Acid Market Report
• Units of assessment: $/mt
• Timestamp: 1630 Penang close, published according to the Penang publishing calendar
• Notes: CFR Indonesia, normalized to Bahodopi port, Indonesia. CFR Vietnam, normalized to Haiphong port, Vietnam. In the absence of representative CFR Indonesia and CFR Vietnam price information, Platts may also refer to other ports or prices in relevant destinations/origins and use prevailing spot freight rates.

Platts is seeking feedback on all elements of this proposal, including the specifications and sulphuric acid purity levels.

Please submit any feedback, comments or questions about this proposal to fertilizer@spglobal.com and pricegroup@spglobal.com by May 28, 2024.

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.