Platts launches C+F Japan naphtha minimum 70% paraffin assessments

S&P Global Platts has begun publishing assessments for C+F Japan naphtha with minimum 70% paraffin content, with effect from April 16, 2021.

Platts is now publishing an outright price and a spot cash differential for this new grade. The new assessments, called Naphtha (min 70%) C+F Japan Cargo and Naphtha (min 70%) C+F Japan Premium/Discount, are being published alongside the existing Platts C+F Japan benchmark naphtha assessments, which reflect naphtha with minimum 65% paraffin content.

Platts first announced its decision to launch these assessments in a subscriber note published April 9: http://plts.co/ki7h30rEcPk.

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.

METHODOLOGY: The C+F Japan naphtha (min 70%) outright price and differential assessments 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%) reflects 25,000 mt cargoes for delivery 45-75 days forward from the date of publication.

Platts is also assessing 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, reflects 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 MOC process will end at 16.30.000 hours Singapore time. A rebid or re-offer following a trade in the last 10 seconds prior to the close of the MOC process 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 process are available in the Platts Oil Timing and Increment Guide, available here: http://plts.co/fPWe30rAZxQ.

The new assessments are:

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 are 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. 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.