S&P Global Commodity Insights Expands Platts Ammonia Forward Curves to 24 Months for US, Europe, Middle East, Asia, Amid Changing Environment
S&P Global Commodity Insights is expanding its Platts Ammonia Forward Curves to 24 months, effective September 16, 2022. This enhancement responds to rising demand for long-term ammonia pricing amid market volatility and high spot prices. The new curves will be quantitatively driven, covering FOB Middle East, CFR Northwest Europe, CFR US Gulf, and CFR Far East Asia. This expansion builds on existing forward curves launched earlier in 2022, aiming to improve price risk strategies and bolster international trade in ammonia.
- Expansion of ammonia forward curves to 24 months may enhance market liquidity.
- Quantitative assessments could improve the accuracy of price forecasts for ammonia.
- Increased demand for long-term pricing reflects confidence in ammonia's role in the energy transition.
- None.
New quantitatively-assessed forwards build on the existing editorially-assessed 3-month forwards
SINGAPORE and LONDON and NEW YORK, Sept. 15, 2022 /PRNewswire/ -- S&P Global Commodity Insights™, the leading independent provider of information, analysis and benchmark prices for the commodities and energy markets, is expanding global Platts Forward Curves for conventional ("gray) ammonia to 24 months, effective September 16, 2022, further enhancing Platts Ammonia benchmark offerings across the global market.
"This launch follows market engagement and responds to increased interest for longer-term ammonia price trends, amid market volatility and this year's historically high ammonia spot prices," said Mario Perez, Managing Editor, Hydrogen Pricing, S&P Global Commodity Insights. "The interest in and importance of ammonia is increasing by the day. Ammonia is expected to move quickly into the energy transition space as fuel for power generation and as bunker fuel."
The new, expanded forward curves for ammonia are built on the existing near-term Platts Ammonia Forward Curves for conventional ("gray) ammonia free-on-board (FOB) Middle East and on a cost, insurance and freight (CFR) basis for Northwest Europe and US Gulf Coast, which were launched April 26, 2022. Prompt months in the forward curve are assessed by the Platts editorial team, based on market data, prevailing price information, historical price spreads and trend analysis.
Platts is adding months four through 24 of new quantitatively-driven forward assessments to FOB Middle East, CFR Northwest Europe and CFR US Gulf. It is also launching a new set of months one to 24 of quantitative forward assessments for CFR Far East Asia, all effective September 16th.
More details may be found here: (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/071922-s-p-global-commodity-insights-to-publish-ammonia-quantitative-forward-curves-out-to-month-24 )
Earlier this year, on April 26, 2022, S&P Global Commodity Insights began publishing a daily Platts forward curve for three months forward for conventional ("gray) ammonia. The new forward curves add to the Platts ammonia price assessments, which already include gray anhydrous ammonia cargoes begun in October 2021 and low-carbon ("blue") ammonia price valuations, which Platts launched April 22, 2022.
Understanding the forward price of ammonia could bring additional confidence over time in price risk strategies such as hedging, as well as investing in ammonia production facilities. Increased confidence could boost liquidity and promote international trade, including exchange settlement transactions.
Media Contacts
Global/EMEA: Alex Ortolani, +1 917-618-0709, alex.ortolani@spglobal.com
Americas: Kathleen Tanzy, +1 917-331-4607, kathleen.tanzy@spglobal.com
Asia/EMEA: Melissa Tan, +65-6597-6241, melissa.tan@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodities markets enables our customers to make decisions with conviction and create long-term, sustainable value.
We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including the most significant benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights.
S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights
View original content to download multimedia:https://www.prnewswire.com/news-releases/sp-global-commodity-insights-expands-platts-ammonia-forward-curves-to-24-months-for-us-europe-middle-east-asia-amid-changing-environment-301625587.html
SOURCE S&P Global Commodity Insights
FAQ
What is the significance of S&P Global's expanded Platts Ammonia Forward Curves?
When will the expanded Platts Ammonia Forward Curves take effect?
Which regions are covered by the new Platts Ammonia Forward Curves?
How do the new ammonia forward curves impact market participants?
Why is there growing interest in ammonia pricing according to S&P Global?
