Platts clarifies EUR1 certificate guideline for West Med butane MOC process

S&P Global Platts would like clarify that its FOB West Mediterranean butane assessment reflects trade in which an EUR1 certificate, is provided by the seller to the buyer.

Platts understands that it is common market practice for butane coasters loading in the West Mediterranean to have an EUR1 certificate. According to market feedback, this is representative of the majority of supply in the region, as well as key destinations, and as such, forms the core fungible part of this market.

An EUR1 enables importers in certain countries to import goods at a preferential rate of import duty under trade agreements between the EU and beneficiary countries.

Based on an analysis using cFlow data and market feedback, Platts understands that the majority of butane coasters that loaded from Lavera -- which is the basis port of the Platts FOB West Mediterranean butane assessment -- discharged at destinations where an EUR1 certificate provided such import duty benefits.

In its Market on Close assessment process, Platts may publish bids, offers and trades for cargoes that do not stipulate having an EUR1 certificate, but these may be subject to normalization back to the standard.

Please send any questions or comments to Europe_products@spglobal.com and pricegroup@spglobal.com

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