Platts extends feedback period for proposal to redefine FD UK polymer, recycled plastics assessments as DAP UK

S&P Global Platts has extended the feedback period for its proposal to revise the incoterm for its UK polymer and recycled plastics assessments from FD (free delivered) to DAP (delivered at point) and is inviting further feedback through to Dec. 31.

Platts is also seeking feedback on the timing of the proposed change, with implementation proposed from April 2022 onward.

The proposal was initially published Aug. 31 in a subscriber note available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/083121-platts-proposes-to-redefine-fd-uk-polymer-recycled-plastics-assessments-as-dap-uk

This followed an open consultation on European petrochemical incoterms begun June 9 and announced in a subscriber note available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/060921-platts-opens-consultation-on-european-petrochemicals-incoterms

Initial feedback suggests that following the UK's exit from the European Union, polymer and recycled plastics market participants increasingly prioritize incoterms which better capture freight differentials and duty considerations as the basis for UK spot transactions and bilateral contracts.

The proposal would affect the following spot assessments and all associated calculations:

DESCRIPTION SYMBOL

Recycled PET clear flakes FD UK daily spot GBP AAVKY00

Recycled PET clear flakes FD UK daily spot EUR AAVKZ00

Recycled PET mixed colored flakes FD UK daily spot GBP ARPFB00

Recycled PET mixed colored flakes FD UK daily spot EUR ARPFC00

Recycled PET food grade pellets FD UK daily spot GBP ARPGB04

Recycled PET food grade pellets FD UK Daily EUR ARPGC04

PET FD UK weekly spot EUR AAXOC00

PET FD UK weekly spot GBP AAXOD00

The proposal would affect the following contract assessments and all associated calculations:

DESCRIPTION SYMBOL

HDPE B/Mldg FD UK weekly contract price GBP PHAMI00

HDPE Film FD UK weekly contract price GBP PHAVL00

HDPE HMW 2-5 FD UK weekly contract price GBP AAVJV00

HDPE HMW 5-10 FD UK weekly contract price GBP AAVPE00

HDPE Inj FD UK weekly contract price GBP PHAMN00

LLDPE CSF FD UK weekly contract price GBP AAPFS00

LLDPE G-P FD UK weekly contract price GBP PHAMD00

LDPE G-P FD UK weekly contract price GBP PHALY00

PP Homo injection UK weekly contract price GBP PHANC00

PP Copol UK weekly contract price GBP PHANH00

PS G-P Net FD UK weekly contract price GBP HPTSC00

HIPS Net FD UK weekly contract price GBP HPTSD00

EPS FD UK weekly contract price GBP AAVKP00

PET Bottle Grade FD UK weekly contract price GBP AACVL00

PET Bottle Grade FD UK weekly contract price EUR AACVN00

PET Bottle Grade FD UK Net weekly contract price GBP AAVLF04

PET Bottle Grade FD UK Net weekly contract price EUR AAVLG04

PVC Susp FD UK gross weekly contract price GBP PHALT00

PVC Susp FD UK net weekly contract price GBP AAXCI00

ABS Auto Black FD UK weekly contract price GBP PHANP00

ABS Average Color FD UK weekly contract price GBP PHANL00

ABS GP/Nat FD UK weekly contract price GBP AAQCQ00

Platts polymer contract price assessments reflect prices freely negotiated between contract parties for monthly deliveries assessed each week as confirmation is received both on preliminary data and concluded deals from buyers and sellers. Platts defines a contract price as one negotiated against an annual commitment to supply or procure regular monthly volumes.

Platts polymer and recycled plastics assessments are published on Platts Petrochemical Alert, in Polymerscan, on Platts Market Center, the petrochemical service on Platts Dimensions Pro and in Platts Market Data.

DESCRIPTION PAGE

Platts Domestic European Polymer Contract Assessments PC0240

Platts European PS Assessments PC0276

Platts European Polymer Spot Assessments PC0239

Platts European Recycled Polymer Daily Assessments PC0503

Platts invites feedback on this proposal and on its implementation date by Dec. 31. Please send all questions and comments to petchems@spglobal.com and pricegroup@spglobal.com.

Platts continues to invite feedback on whether the free delivered incoterm reflects standard market practice with sufficient clarity in northwest Europe or whether alternative incoterms, such as DDP, DAP and CPT, would provide additional market transparency. Platts assesses a range of European petrochemicals domestic markets as basis FD, including polymers, recycled plastics, solvents, intermediates and olefins.

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.