S&P Global Commodity Insights Launches New Price-Assessment-Based Indices Reflecting Commodity Sector Value Trends

Rhea-AI Summary

S&P Global Commodity Insights has launched five new price-assessment-based indices through its Platts division to track global commodity sector value trends. The new indices cover Global Transportation Fuels, Conventional Energy, Industrial Materials, Decarbonization, and Global Recycled Packaging. These indices compile spot physical prices from various markets including oil, natural gas, LNG, carbon, metals, chemicals, and biofuels. Over 380 companies have engaged with these indices during beta testing, with the Transportation Fuels Index showing a 9.5% decline year-to-date through October, indicating reduced inflationary pressure from fuel costs.

Positive

• Launch of five new comprehensive commodity indices expanding market coverage
• Strong market adoption with over 380 companies already engaging during beta testing
• Transportation Fuels Index shows 9.5% decline, indicating reduced inflationary pressure

Negative

• None.

Indices Reflect Global Transportation Fuels, Conventional Energy, Industrial Materials, Decarbonization and Recycled Packaging

HOUSTON and NEW YORK and SINGAPORE, Dec. 2, 2024 /PRNewswire/ -- Platts, part of S&P Global Commodity Insights, the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets, today announced the expansion of its commodity price assessment portfolio to feature commodity sector indices. These indices reflect compilations of spot physical prices from the oil, natural gas, liquefied natural gas (LNG), carbon, metals, chemicals and biofuels markets, and provide additional big-picture value trends related to global commodity markets.

Annette Hugh, Global Head of Market Development and Engagement, S&P Global Commodity Insights, said: "Our five new global indices provide an at-a-glance, macro view of physical market pricing trends in key global commodity sectors. Platts' world-renowned commodity price benchmarks underpin these indices, which provide a first-of-a-kind trend price reference for critical global markets based on spot market values."

The new Platts global commodity indices (with URL link to price) include:   

• Platts Global Transportation Fuels Index: The daily index features key Platts transportation fuels price assessments across road, air, sea and rail, providing a macro view of physical pricing cost trends in the global transportation market.
• Platts Conventional Energy Index: The daily index is underpinned by core price benchmarks in the conventional energy space, including crude oil, gas, LNG, coal and nuclear, providing global energy suppliers and consumers with a macro indicator of the trend of conventional energy fuels. 
• Platts Industrial Materials Index: The daily index provides a global, macro pricing trend of key raw materials used in industrial production processes, including iron ore, coking coal, plastics, rubber and aluminum.
• Platts Decarbonization Index: The daily index represents the theoretical cost to offset carbon emissions using a basket of increasingly sought-after segments of the voluntary carbon market, such as nature-based avoidance, household devices and technology carbon capture credits. 
• Platts Global Recycled Packaging Index: The daily index provides the consumer packaging/fast-moving consumer goods (FMCG) sectors with a global indicator for key recycled materials, including used beverage cans, recycled polyethylene terephthalate (PET) used in plastic bottles, and recycled polypropylene (PP) and polyethylene (PE) used in food packaging and manufacturing processing, respectively. 

The Platts global commodity indices show how related market segments are performing. More than 380 companies have already interacted with these indices since the exploratory beta-testing launch in recent months, with heightened interest coming from the global transportation sector. The Platts Global Transportation Fuels Index is down 9.5% in value year to date through October, reflecting a steady decline in inflationary pressure stemming from the cost of fuel prices. The index is particularly relevant, as transportation fuel cost is a key component of most governments' macroeconomic inflation data and there is much attention on the escalation in geopolitical tensions along key seaborne transport routes this year, as well as continued rapid electrification of the global vehicle fleet. 

Vera Blei, Head of Market Reporting and Trading Solutions, S&P Global Commodity Insights, said: "Platts' robust physical price assessments serve as the key ingredient for these indices which we believe observers of global commodity markets will increasingly reference in tandem with Platts physical spot assessments as a means of comparing the broader market versus a specific physical commodity benchmark." 

For greater detail on the methodology behind these indices, access: Global Commodity Indices Specification Guide.

The suite of Platts global commodity indices are available via the products and services of S&P Global Commodity Insights, including such as  Platts Connect and Commodity Insights Live.

Media Contacts:
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com
Asia: 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 commodity 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 leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global. 

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.

©2024 by S&P Global Commodity Insights, a division of S&P Global Inc.

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SOURCE S&P Global Commodity Insights

FAQ

What are the five new indices launched by S&P Global Commodity Insights (SPGI)?

The five new indices are: Platts Global Transportation Fuels Index, Platts Conventional Energy Index, Platts Industrial Materials Index, Platts Decarbonization Index, and Platts Global Recycled Packaging Index.

How has the Platts Global Transportation Fuels Index performed in 2024?

The Platts Global Transportation Fuels Index has declined 9.5% in value year to date through October 2024, indicating reduced inflationary pressure from fuel costs.

How many companies have engaged with the new SPGI commodity indices during beta testing?

More than 380 companies have interacted with these indices since the exploratory beta-testing launch.