Platts decides to make changes to CIF ARA mixed xylene, toluene assessments

Following a consultation and proposal period, S&P Global Platts has decided to make changes to its delivery periods, quantity and nomination procedures reflected in its European CIF ARA mixed xylene and toluene assessment processes, from April 24, 2020.

Platts launched a formal consultation into these assessments on October 4, 2019 in a subscriber note available here: http://plts.co/9WRJ30qcZ6L

This was followed by a formal proposal on December 6, 2019 in a subscriber note available here: http://plts.co/3De130qcZ7T

These changes reflect the range of feedback received.

DELIVERY PERIODS: Platts has decided to change the delivery laycans participants may bid and offer in the Market on Close assessment process. Specifically, under this proposal Platts will only publish bids and offers with balance month or calendar month delivery periods. This will better align published market information with current spot market activity as well as Platts assessments. Platts M1 and M2 assessments will continue to reflect calendar month timing, and M1 will roll forward to the next calendar month 5 working days prior to the end of the current month.

DELIVERY NOMINATION: In addition, Platts will only publish indications under which sellers will narrow the delivery window, subject to mutual agreement with the buyer. At least five calendar days prior to the narrowed delivery window, sellers will nominate performing vessel and narrow the window to ten days for coasters or larger vessels, and to five days for barges. For balance month trades with reduced laycans, nominations will have to be made promptly following the trade.

QUANTITY: In addition, Platts has decided to only publish bids, offers and trades in the range 2,000 to 5,000 mt. Currently Platts publishes market indications with a minimum quantity of 1,000 mt.

VESSEL TERMS: Platts has decided to only publish bids, offers and trades in which laytime and demurrage are capped at the level of a 10,000 dwt vessel. Platts will only reflect trades reported in the MOC process where counterparties agree to demurrage either as per charterparty agreement or at the market rate of a 10,000 dwt vessel, whichever is lowest.

The following symbols will be affected:

For further comments or queries, please contact petchems@spglobal.com and pricegroup@spglobal.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 will make comments not marked as confidential available upon request.