Platts clarifies Asian PX standards and credit terms

Platts, part of S&P Global Commodity Insights, is issuing the below clarifications to the standards and credit terms of its Asian paraxylene (PX) CFR Taiwan/China benchmark assessment. The Platts assessment reflects PX from all origins, with a minimum purity of 99.7%, conforming to international standards and equivalence.

Ship size and discharge terms: Near-haul PX refers to 5,000 mt cargo, delivered on and up to 20,000 dwt ship with a single/double or first/second port of discharge. Long-haul PX will refer to PX delivered on a larger ship, up to 35,000 dwt, with any order of discharge. The pricing information for long-haul PX cargo will be reflected in the assessment, subject to normalization.

Commodities supplied from countries or entities that are subject to applicable trading embargoes and sanctions are not to be delivered against transactions concluded during the Platts Market on Close assessment process. Bids and offers that contain statements surrounding delivery of embargoed or sanctioned materials will be considered by Platts for publication, and if published after review may be subject to normalization in value.

Credit terms: Platts notes that the typical standard near-haul cargo Letter of Credit (LC) is on a 30 days basis, in line with market practice for typical observable trading activity. Platts understands that there are instances where an LC of 45 days is accepted is an exception to the norm and is typically bilaterally agreed and accepted by both counterparties. Market information with non-standard credit and payment terms may be normalized to the stated standard.

Please send any comments or questions to 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.