Chemicals, Polymers

October 15, 2024

Platts is proposing changes to its Southeast Asia PE, PP coverage

Platts, part of S&P Global Commodity Insights, is proposing to launch new CFR Vietnam polyethylene and polypropylene assessments and to amend the basis location of its existing CFR Southeast Asia assessments, effective Jan. 8, 2025.

Platts understands that there is a structural pricing disparity between cargoes delivered to Vietnam and to the other standard ports reflected in the current CFR Southeast Asia PE and PP assessments.

The standard ports reflected in the existing CFR SEA PE and PP assessments are currently as follows:

PE CFR Southeast Asia: Indonesia (Jakarta, Surabaya), Singapore, the Philippines (Manila Bay), Malaysia (Port Klang), Thailand (Map Ta Phut, Laem Chabang), Vietnam (Ho Chi Minh City).

PP CFR Southeast Asia: Indonesia (Jakarta, Surabaya), Singapore, the Philippines (Manila Bay), Malaysia (Port Klang), Thailand (Bangkok, Laem Chabang, Map Ta Phut), Vietnam (Ho Chi Minh City).

NEW CFR VIETNAM ASSESSMENTS

Platts is proposing to launch a suite of new CFR Vietnam assessments for the following products:

Low-density polyethylene,

Linear low-density polyethylene,

High-density polyethylene injection,

High-density polyethylene blow molding,

High-density polyethylene film,

High-density polyethylene yarn

Linear low-density polyethylene metallocene C6

Polypropylene raffia,

Polypropylene homopolymer injection,

Polypropylene inflation film (IPP),

Polypropylene biaxially oriented film (BOPP)

Polypropylene block copolymer.

The proposed new assessments would reflect cargoes that are not subjected to import duties to the delivery locations in the CFR Vietnam assessment.

The proposed new assessments, to be published every Wednesday, would be based on the latest information sourced from the market up to the close of the assessment process at 4:30 pm Singapore time (0830 GMT). It would be published in $/mt and follow the Singapore publishing schedule.

The proposed assessments would reflect the products with the following parameters:

PE PP
Timing Delivery 15- 30 days forward from the date of publication Delivery 20- 45 days forward from the date of publication
Basis and location Ho Chi Minh City Ho Chi Minh City
Cargo size 100-500 mt 100-500 mt
Terms and conditions Credit terms of up to L/C 30 days Credit terms of up to L/C 30 days
Quality specifications

- HDPE injection: Melt flow index of 2.0-25.0, with most of business focused on crate grade material with melt flow index of 5.0-11.0.

- HDPE blow molding: Medium molecular weight with melt flow index of 0.2-0.35.

- HDPE film: High and medium molecular weight material with melt flow index of 0.07-0.18.

- HDPE yarn: Melt flow index of 0.7-1.1.

- LDPE: Melt flow index of 0.3-4.0.

- LDPE: Butene grade with melt flow index of 1.0-2.0.

- LLDPE metallocene C6: 1-hexene comonomer with a density of 918- 940 kg /m3 with a melt flow index between 1.0 and 4.5;

- Raffia (also known as flat yarn): melt flow rate of 2.0-4.5 at 230°VC.

- Homopolymer injection: melt flow rate of 11-20 at 230°VC.

- IPP, BOPP and block copolymer: melt flow rate of 6-20 at 230°VC.

The new PE CFR Vietnam assessments would be published on PCA573 and PCA462. The new PP CFR Vietnam assessment would be published on PCA282 and PCA462. All assessments would also appear on Platts Connect, Platts Market Center, in Asian Petrochemicalscan and Polymerscan.

CFR SE ASIA CHANGES

Alongside the new assessments, Platts is also proposing to exclude Vietnam as a delivery location for all grades of its CFR Southeast Asia PE and PP assessments.

The assessments would continue to reflect cargoes subject to import duties to the delivery locations in the CFR Southeast Asia assessment.

These changes would affect the following assessments :

Symbol Mavg Wavg
HDPE B/ Mldg CFR SE Asia Weekly AAAYO00 AAAYP00
HDPE Film CFR SE Asia Weekly PHALD00 PHBBH03
HDPE Inj CFR SE Asia Weekly PHAHO00 PHBBB03
HDPE Yarn Grade CFR SE Asia Weekly AAVAJ04 AAVAJ03
LDPE G-P CFR SE Asia Weekly PHAHU00 PHBAS03
LLDPE Butene CFR SE Asia Weekly PHAHA00 PHBAW03
C6 Metallocene CFR SE Asia Weekly AAXYN04 AAXYN03
PP Raffia CFR SE Asia Weekly PHBIJ04? PHBIJ03?
PP Inj CFR SE Asia Weekly PHBIH04 PHBIH03
PP Inflated Film CFR SE Asia Weekly PHASK05 PHASL03
PP Bi-axially Oriented Film CFR SE Asia Weekly AAAYY00 AAAYZ00
PP Copol CFR SE Asia Weekly PHAIA00 PHBCI03

The PE CFR SEA assessments are currently published in PCA573, PCA462, Platts Connect, Platts Market Center, Asian Petrochemicalscan and Polymerscan, while the PP CFR SEA assessments are currently published in PCA282, PCA462, Platts Connect, Platts Market Center, Asian Petrochemicalscan and Polymerscan.

There w ould be no changes to the other existing parameters for all grades under the PE/PP CFR SEA assessments, published weekly on Wednesday.

Please send all feedback and comments by Nov. 20, 2024 to petchems@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.