S&P Global may publish non-standard information in Asia petrochemical product assessment process

S&P Global Commodity Insights would like to clarify that it may publish bids, offers and indications to trade that include origin restrictions in its Platts Asian petrochemical markets, where appropriate.

S&P Global has observed that participants in its Platts Asian petrochemical markets are increasingly seeking to include restrictions, particularly relating to the provenance and ownership of the material, its origin and/or transport logistics in their bids, offers and indications to trade. As such, S&P Global may publish bids, offers and indications to trade that include restrictions on the origin and/or transport logistics, where appropriate. S&P Global makes no commitment to publish every bid or offer submitted to it, particularly if they are deemed to be unperformable or overly restrictive.

Unless otherwise stated, Platts price assessments reflect petrochemical products of open origin. Published bid, offer and trade information that deviates from Platts standard may be subject to normalization.

Platts assessments reflect merchantable material, and S&P Global is continuously reviewing the merchantability of open-origin petrochemical products in its Market on Close assessment process.

MOC PERFORMANCE

S&P Global also wishes to clarify performance expectations on transactions reported in its Platts MOC that stipulate restrictions on origin.

Companies' terms around origin restrictions may be published, provided they are consistently applied and accepted as part of normal trading practice.

Counterparties are expected to perform on trades reported in the MOC based on typical terms that have been applied and accepted in the open market.

When offering in the MOC, a seller would be expected to meet the buyer's typical and reasonable terms around origin restrictions.

Upon expression of interest to trade, the buyer should promptly communicate to the seller the expectations around origin restrictions. Documentation proving the origin of the material should not be unreasonably withheld.

When reporting bids in the MOC, a buyer may stipulate specific terms around origin restrictions, which would be reviewed for publication.

In markets where S&P Global publishes both open-origin and restricted-origin indications, offers for restricted-origin material are expected to include a generic restricted-origin clause. S&P Global may not publish offers that stipulate specific terms around the origin.

A full description of the Platts assessment methodology can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/petrochemicals.

Please send any comments or questions to petchems@spglobal.com and copy pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available upon request.