Platts extends consultation period for Asia FOB Korea toluene assessment methodology

Platts, part of S&P Global Commodity Insights, is extending the feedback period for its consultation on the Asia toluene assessment methodology to April 30.

Market participants are encouraged to submit feedback on the evolution of the toluene methodology in general, and on the FOB Korea, FOB China, CFR China, FOB Southeast Asia and CFR Southeast Asia assessments.

Platts first sought feedback on its FOB Korea toluene assessment methodology in a subscriber note published Dec. 22, 2023. The initial feedback period ended Jan. 31, 2024. https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122223-platts-seeks-feedback-on-its-asian-toluene-methodology

Platts has observed changes in trade flows between China, South Korea and other countries within Northeast Asia. Over the last few years, China has become a net exporter of toluene as imports have decreased significantly.

Platts has also observed shifts in the logistics and specifications, with more spot material delivered as larger cargoes, with longer voyage time.

Platts is therefore seeking feedback on how to best reflect current market conditions in its Asia toluene methodology. Platts is currently seeking feedback on the following possible options:

•  Expansion of the location basis in the existing FOB Korea benchmark assessment to reflect a wider geographical region including but not limited to China;
•  Discontinuation of the daily CFR China toluene assessments;
•  Discontinuation of the weekly FOB Southeast Asia toluene assessments.

Furthermore, Platts is inviting feedback on the following aspects:

• Specifying a minimum purity level of 99.5% in its FOB Korea toluene specification. Currently, the existing methodology references the test method ASTM D-841 and does not specify a purity level;
• Reviewing cargo size basis, with a minimum and/or maximum volume. These are currently specified as 2,000 mt for FOB Korea assessments and 3,000 mt to 6,000 mt for FOB China assessments;
• Possible origin definitions and/or restrictions
• Main load ports in Northeast Asia and vessel size limitations at their berths.

Platts periodically reviews the specifications of all its assessments to ensure they are representative of the most tradable grades. Such reviews may lead to changes to the existing specifications of an assessment, though any changes would be subject to further industry consultation ahead of any final decision.

Platts also welcomes feedback on the timing of any potential changes, and other parameters of its toluene assessment methodology not explicitly called out above.

Please send all feedback, questions or comments to petchems@spglobal.com and pricegroup@spglobal.com by April 30.

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.