Platts to launch C+F Japan naphtha minimum 70% paraffin assessments April 16

S&P Global Platts will launch an assessment for C+F Japan naphtha with minimum 70% paraffin content, effective April 16, 2021, with spot market liquidity of higher paraffinic naphtha in Asia gaining momentum in the past one to two years.

Platts has observed growing interest in naphtha with minimum 70% paraffin content from Asian petrochemical producers, particularly in Japan, driven by strong olefins and weak aromatics margins, coupled with lower domestic supply of high paraffinic naphtha grades. Elsewhere in Asia, South Korea, Taiwan and Southeast Asia have been importing naphtha with minimum 70% paraffin content for several years. Nearly 70% of the total naphtha supply consumed in Asia is estimated to be of minimum 70% paraffin content, according to market sources.

From April 16, 2021, Platts will publish an outright price and a spot cash differential for this new grade. The new assessments, to be called Naphtha (min 70%) C+F Japan Cargo and Naphtha (min 70%) C+F Japan Premium/Discount, will be published alongside the existing Platts C+F Japan benchmark naphtha assessments, which reflect naphtha with minimum 65% paraffin content.

The launch of the new assessment follows extensive consultation with traders, end-users and producers in Asia and the Middle East, as demand and trade for naphtha grades of minimum 70% paraffin grows.

METHODOLOGY: The C+F Japan naphtha (min 70%) outright price and differential assessments will reflect the same specifications as the existing Platts C+F Japan naphtha assessments, except with a minimum paraffin content of 70%.

The outright assessment for C+F Japan naphtha (min 70%) will reflect 25,000 mt cargoes for delivery 45-75 days forward from the date of publication.

Platts will also assess a spot premium or discount to reflect the value of cargoes being delivered into Japan. The differential, which is against the Mean of Platts Japan Naphtha assessments, will reflect 25,000 mt cargoes for delivery 30-60 days forward.

MOC PROCESS: Platts will publish bids, offers and trades for C+F Japan naphtha (min 70%) during its Market on Close assessment process. These can be submitted to a Platts editor, who will then publish the information on Platts Global Alert page 190. Market participants should specify complete information, including the delivery cycle, volume and price, at the time of submitting a bid or offer for publication in the MOC process.

All time spread bids and offers have to be submitted by 15.45.00 hours Singapore time, and all outright bids and offers have to be submitted by 16.00.00 hours Singapore time. Bids or offers can be improved by a maximum of $1/mt per 60 seconds. Following any trade, there will be 30 seconds to rebid or reoffer. Price changes can be made up to 16.29.00 hours Singapore time, followed by a one-minute freeze period where no price changes are allowed to be made to bids or offers. The Market on Close assessment process will end at 16.30.000 hours Singapore time. A rebid/re-offer, following a trade, in the last 10 seconds prior to the close of the MOC will trigger a 60-second extension period, in order to adequately test that bid or offer.

Guidelines for the publication of bids and offers in the MOC are available in the Platts Oil Timing and Increment Guide available here: http://plts.co/fPWe30rAZxQ .

The new assessments will be published under the following Platts symbols:

ASSESSMENT CODE

Naphtha (min 70%) C+F Japan Cargo $/mt NCJCA00

Naphtha (min 70%) C+F Japan Cargo $/mt MAvg NCJCA03

Naphtha (min 70%) C+F Japan Premium/Discount $/mt NCJCB00

Naphtha (min 70%) C+F Japan Premium/Discount $/mt MAvg NCJCB03

These assessments will be published on Platts Global Alert pages 2302, 2303, 2330 and 2331; in Platts Asia-Pacific/Arab Gulf Marketscan; and in the Platts price database under the codes above.

Please send any comments or feedback to asia_products@spglobal.com and pricegroup@spglobal.com.

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