Platts opens consultation on European petrochemicals incoterms

S&P Global Platts is opening a formal consultation on incoterm specifications for its European petrochemicals domestic spot and contract price assessments.

Specifically, Platts is seeking feedback on whether the free delivered (FD) incoterm reflects standard market practice with sufficient clarity or whether alternative incoterms, such as DDP, DAP and CPT, that may be more typically used as the basis for spot transactions and bilateral contracts would provide additional market transparency.

Platts has received initial feedback on domestic markets in northwest Europe and the UK suggesting that market participants generally prioritize more detailed incoterms which better capture freight differentials and duty considerations. Platts assesses a range of European petrochemicals domestic markets as basis FD, including intermediates, olefins, polymers and solvents.

Platts is also inviting feedback on its 3-30 day assessment laycan for domestic, export and import spot price assessments of intermediates, olefins, polymers, recycled plastics and solvents. Specifically, Platts is seeking feedback on whether full-month laycans would be preferred to cross-month laycans for products delivered or loading in Northwest Europe and the UK.

Platts additionally seeks comments on the timing of any potential methodology changes that may emanate from the consultation phase.

As part of its commitment to open and transparent pricing and product specifications, Platts welcomes continuous feedback on all aspects of its European petrochemicals methodology. Platts European petrochemicals specifications guide is available here: https://rb.gy/fguqds.

Please send all questions and comments to petchems@spglobal.com and pricegroup@spglobal.com by June 30, 2021.

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.