Platts implements changes in Asia MTBE methodology, launches new differential Jan 2, 2025

Platts, part of S&P Global Commodity Insights, has changed the cargo sizes reflected in its FOB Singapore MTBE assessment and has launched a new MTBE differential assessment to gasoline, effective Jan. 2, 2025.

Platts announced its decision to implement these changes in the subscriber note published on Dec. 3, following a consultation initiated on Aug. 28 and a proposal subscriber note published on Oct. 28 (https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/120324-platts-to-change-asia-mtbe-methodology-launch-new-differential-on-jan-2-2025).

Cargo size

Platts has started reflecting 5,000 mt cargoes in its FOB Singapore MTBE assessments, in addition to the existing 3,000 mt parcels. As part of this change, Platts has stopped reflecting 2,000 mt parcels in its MTBE assessments.

In cases where the bid and offer might cross due to volume differences, the largest volume within the published guidelines takes precedence in the assessment process. For example, a bid for 5,000 mt of MTBE on an FOB Singapore basis takes priority over an offer of 3,000 mt.

New differential to 92 RON gasoline

Platts has started publishing an FOB Singapore MTBE differential (premium or discount) to the corresponding strip of the Platts FOB Singapore 92 RON gasoline Mean of Platts Singapore at 4:30 pm Singapore time.

The 15-40 days forward gasoline MOPS Strip is used as a basis to measure the value of the physical MTBE market when a floating price is used. Platts uses Balance Month and Month 1 gasoline derivatives assessments to calculate the MOPS Strip value until the 15th calendar day of the month, following which Month 1 and Month 2 derivatives assessments are used to calculate the strip.

The new differential assessment complements the existing outright MTBE price assessment and reflects the cargoes with the same specifications and terms.

The MTBE differential is expressed in $/b, based on the $/mt-$/b conversion factor of 8.45.

E-window

For the new differential assessments, Platts has launched additional new instruments on the Platts Editorial Window, or eWindow, for the FOB Straits MTBE Market on Close assessment process. The new instruments allow market participants to submit bids and offers for FOB Straits MTBE as differentials expressed in $/b over Platts FOB Singapore 92 RON gasoline MOPS Strip.

Market participants are able to improve their bids and offers by a minimum of $0.01/b per 30 seconds and a maximum of $0.05/b per 30 seconds right up until the close of the MOC at 4:30 pm Singapore time (0830 GMT).

Following any trade, there are 30 seconds to rebid or re-offer. A one-minute extension period is triggered by any price move or a rebid/re-offer in the 30 seconds prior to the close of the MOC.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers in the MOC to ensure an orderly and transparent price assessment process, which can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/petrochemicals-timing-increment-guidelines.pdf

MTBE factor

Platts continues to publish an MTBE factor, which expresses the ratio between daily MTBE assessments basis FOB Singapore and 92 RON gasoline assessments FOB Singapore. The factor calculation uses the mean of the low and high of Platts MTBE assessments and 92 RON cargo assessments, respectively.

All other aspects of the FOB Singapore MTBE assessment methodology remain unchanged, including the loading laycan, which will remain 15-40 days forward from the date of publication.

Please send all comments, feedback and questions to petchems@spglobal.com and pricegroup@spglobal.com.

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