SUBSCRIBER NOTE: Platts updates USGC naphtha floating price assessment practices

S&P Global Platts has implemented changes to its Market On Close assessment process for US Gulf Coast naphtha barges with effect from April 3, 2017, aimed at simplifying the process and aligning it even more closely with typical trading patterns in the USGC market.

With effect from April 3, 2017, Platts no longer publishes bids, offers and intentions to trade in the MOC process for USGC naphtha barges with floating pricing linked to dates determined post-trade. This includes floating prices related to the declaration of Notice of Readiness (NOR) to discharge, and the Commencement of Discharge or Completion of Discharge (COD).

Platts continues to publish floating bids, offers and intentions to trade in the MOC with deemed (fixed) pricing dates, as well as bids, offers and intentions to trade on a flat price basis.

In addition, with effect from April 3, 2017, Platts only publishes floating bids, offers and intentions to trade in the MOC process for naphtha barges that settle in reference to a value averaged over at least three publishing days, in line with typical trading patterns in the USGC market.

This follows a decision note published March 14, 2017, and a proposal note published December 28, 2016. The decision and proposal notes can be found at https://www.platts.com/subscriber-notes-details/26685035 and http://www.platts.com/subscriber-notes-details/26628260. In the proposal note, Platts suggested it would no longer publish bids or offers in the MOC with floating pricing linked to NOR, but that it would continue to publish bids or offers in the MOC with three-day pricing around or after Commencement of Discharge or Completion of Discharge with the exception of the periods around the seasonal gasoline RVP changes.

Feedback since then has suggested that unpredictability and possible delays in actual discharge timing may add uncertainty to any bids or offers with either NOR- or COD-related pricing options. Platts understands that stating deemed dates for pricing settlement is typical practice in the industry. Deemed pricing dates would normally align with the three-day delivery laycan for naphtha barges.

Please send any further comments or questions to americas_products@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 written comments not marked as confidential available upon request.