Following industry feedback, S&P Global Platts proposes to revise its US caustic soda weekly FOB USG assessment typical cargo size range to 3,000-6,000 dmt from 650-1,300 dmt, effective Aug. 2, 2021.
Platts will continue to consider smaller vessel sizes, but may normalize to the typical range.
Platts also proposes to change the location of US export and domestic caustic soda assessments to USG from the mode of transportation. Current methodology defines the location as domestic river barge, domestic railcar or USG sea barge for domestic contract, domestic spot and spot export material, respectively. Defining the location as USG for all assessments will more clearly define basis location and allow consideration of all modes of transportation for each when assessing prices.
Platts understands that the minimum cargo size for export caustic soda cargoes of 650 mt reflects parcels sold to Latin American and Caribbean markets, but the higher maximum size would allow for inclusion of parcels sold to South American, European and other international markets in assessments.
Platts also understands that approximately 90% of US chlor-alkali capacity is located along the US Gulf Coast, and that changing the location to USG from the mode of transportation will better reflect value for this concentration of supply.
The symbols for these assessments on an outright basis are:
caustic soda monthly domestic contract price AANTJ00;
caustic soda domestic spot 3-30 days forward AANTH00;
caustic soda spot domestic monthly average AANTH03;
caustic soda weekly export AANTI00;
caustic soda weekly export monthly average AANTI03.
Please send all further feedback and comments by June 15 to Americas_petrochemicals@spglobal.com and firstname.lastname@example.org. 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.