28 Jun 2024 | 13:17 UTC

Platts clarifies its European LSSR assessments exclude cracked material

Platts, part of S&P Global Commodity Insights, would like to clarify that low sulfur straight run cargoes containing cracked material are not considered fungible in the wider market and therefore do not meet the merchantability criteria for inclusion in its European LSSR Market on Close assessment process.

Platts understands that LSSR cargoes containing or produced from cracked material are considered non-fungible in the wider market for refinery feedstocks, based on the requirements of refinery units.

Furthermore, Platts understands that the presence of aluminium and silicon may be indicative of cracked material being present. Hence, Platts expects combined aluminium and silicon levels to be negligible for cargoes delivered within the assessment process, while understanding that the typical testing methods have a detection level of 15ppm.

This clarification applies to the following assessments:

Straight Run 0.5-0.7%S FOB NWE cargo (PKABA00)

Straight Run 0.5-0.7% CIF Med Cargo (AAJNT00)

As per Platts assessment methodology, it only considers in its assessments commodities that are merchantable. Buyers may assume that offers or transactions are for a commodity that is merchantable. Sellers must ensure their offers or transactions are for merchantable commodities. Merchantability may pertain to specifications, contractual terms, shipping and logistical issues as well as other aspects of performance that limit fungibility of the product. In its LSSR assessments, Platts has observed that fungibility extends to refinery usage. For trades reported in the MOC process, material may not be unreasonably rejected.

Please send any feedback 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 to the public upon request.