Platts to reflect typical density of 0.67 to 0.735 kg/l in its European naphtha assessments from Nov. 1

Platts, part of S&P Global Commodity Insights, will begin reflecting a typical density of 0.67 to 0.735 kg/l for naphtha reflected in its European naphtha assessments and associated Market on Close assessment process, effective Nov. 1, 2024.

Platts European naphtha assessments currently reflect open specification material with a minimum 65% paraffin content and a typical density of 0.69 to 0.735 kg/l. Following the Feb. 5, 2023, sanctions prohibiting the import of Russian oil products including naphtha into the European Union, Platts has received market feedback that the increased inflow of naphtha cargoes from a diverse set of countries outside of the EU has resulted in a shift in the typical density of naphtha imported into Northwest Europe.

Based on preliminary market feedback, Platts initially proposed to specify a minimum acceptable density of 0.67 kg/l in its European naphtha assessments, available here: Platts proposes to specify minimum acceptable density in its European naphtha assessments | S&P Global Commodity Insights (spglobal.com) . The feedback period was extended to Sept. 13, found here: Platts extends feedback period for proposed change to specify minimum acceptable density in its European naphtha assessments | S&P Global Commodity Insights (spglobal.com) .

Additional feedback received throughout the extended proposal phase suggested that while 0.67 to 0.735 kg/l would currently reflect the most typical density range for naphtha cargoes delivered into Northwest Europe, it remains prevalent for market participants to reference the open specification naphtha limits in determining merchantability of material, which for density only defines a maximum specific gravity of 0.735 at 15 degrees Celsius. As such, Platts will not specify a minimum acceptable density in its European naphtha assessments at this point.

Following this change, Platts assessments for naphtha cargoes CIF NWE (PAAAL00), naphtha cargoes FOB Med (PAAAI00), naphtha cargoes CIF Med (PAAAH00) and naphtha barges FOB Rotterdam (PAAAM00) would reflect open specification material with a minimum 65% paraffin content and a typical density range of 0.67 to 0.735 kg/l. Other qualities may be taken into account when traded, but these would be normalized to Platts specifications in line with existing methodology.

For details of Platts European naphtha methodology and reflected specifications including RVP, mercury levels, oxygenate content and chloride limit, please refer to the online methodology guide, available here.

Please send any comments to europe_products@spglobal.com with a CC to 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.