S&P Global Platts proposes to discontinue Buenos Aires 3.5% sulfur IFO 380 CST and IFO 180 CST bunker fuel assessments, and launch Average Price Indicators for these grades in their place, effective February 3, 2020.
During the proposed discontinuation period and effective today, December 11, Platts will be assessing IFO 380 and IFO 180 bunkers at parity with Marine Fuel 0.5% in Buenos Aires, barring new information that the market was valuing these products differently.
In the lead up to IMO 2020 implementation, Platts has received feedback that IFO 380 historically sold in Buenos Aires has been below the 0.5% sulfur threshold, indicating that there is no inherent value in the sulfur-level guarantee for Marine Fuel 0.5%.
Platts has also received feedback that IFO 180 is not available or traded in this port.
Platts launched a Marine Fuel 0.5% assessment in Buenos Aires on December 2, under the code MFBAD00: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/120219-platts-launches-additional-americas-marine-fuel-05-bunker-assessments
Alongside the discontinuation, Platts would continue to publish values for these grades in this location as Average Price Indicators.
Platts publishes Average Price Indications for a variety of ports and grades where there is less liquidity and where no assessment is published. For API ports where there are no fresh price points entered on a given day, the API may be designated as a dependent price, and would be generated based on the last known differential between the API and a correlated port or more liquid fuel oil benchmark.
The affected assessments are as follows:
ASSESSMENT SYMBOL
Bunker FO 380 CST 3.5% Dlvd Buenos Aires PUAYH00
Bunker FO 180 CST 3.5% Dlvd Buenos Aires PUAYG00
These prices appear on Platts Global Alert pages 870, 871 and Platts Shipping Alert pages 2240 and 2241. They appear in Bunkerwire, Bunkerwire Monthly and Latin American Wire, as well as in the Platts price database. The Average Price Indicators would appear in Bunkerworld and in the Platts price database.
Please send any feedback on this proposal to americas_products@spglobal.com and pricegroup@spglobal.com by December 26, 2019.
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.