Platts updates FOB Korea toluene methodology, discontinues CFR China and FOB SE Asia assessments

Effective Jan. 2, Platts, part of S&P Global Commodity Insights, has aligned its toluene FOB Korea benchmark methodology with the prevailing trading practices, updating product specifications, cargo sizes and merchantability requirements.

Separately, Platts has discontinued toluene CFR China and FOB Southeast Asia assessments due to shifts in trade flows, also effective Jan. 2.

Changes to FOB Korea benchmark

Specification: The FOB Korea assessment now reflects material with a minimum purity of 99.1%. The previous methodology referred to ASTM D-841 testing method that specified only a maximum of 1.2% deviance in the purity levels.

Cargo size: Platts has started to reflect cargo sizes ranging from 2,000 mt to 3,000 mt in its assessments, with no prioritization between the two. Market information involving non-standard quantities may still be included, subject to normalization to the standard terms, ensuring consistency and reliability in market evaluations. This adjustment aims to enhance liquidity and transparency, and accommodate typical transaction sizes in the Platts assessment process.

Merchantability: The FOB Korea assessment reflects merchantable cargoes which do not incur additional duties or restrictions when delivered to key consumption markets. For example, Platts understands that a significant quantity of toluene is loaded on an FOB Korea basis and is consistently exported to the US and India.

Discontinuation of CFR China and FOB Southeast Asia assessments

Platts has discontinued its toluene CFR China and FOB Southeast Asia assessments in light of changes in trade flows and a switch in price benchmarks used in contracts.

Please refer to the following links for details on the process for the methodology changes.

1. Consultation note, published on Dec. 22, 2023: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122223-platts-seeks-feedback-on-its-asian-toluene-methodology.

2. Proposal note, published on Aug. 5: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080524-platts-proposes-changes-to-asian-toluene-assessments-effective-jan-2-2025 .

3. Decision note, published on Oct. 3: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100324-platts-to-implement-changes-to-asian-toluene-assessments-effective-jan-2-2025.

4. Revised decision note, published on Nov. 18: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/111824-platts-amends-its-decision-on-volume-normalization-in-asian-toluene-assessments?utm_source=evaboot.com .

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 make comments not marked as confidential available upon request.

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