Platts changes incrementability guidelines for European LPG priced as percentage of naphtha

Platts, part of S&P Global Commodity Insights, has changed the incrementability guidelines for its European LPG Market on Close assessment process, effective June 3, in line with the launch of percentage of naphtha pricing functionality on the Platts eWindow communication tool at the same time.

Platts had published bids and offers where pricing was wholly or partly based on a percentage of naphtha as manual headlines in the MOC assessment process for European LPG.

From June 3, participants in the MOC are able to submit bids and offers based on a percentage of naphtha for publication directly through eWindow or through an editor, who would then publish bids and offers using the software.

This new functionality applies to the following assessments:

Platts Butane CIF NWE Large Cargo (PMAAK00)

Platts Butane CIF NWE Seagoing Coaster (PMAAJ00)

Platts Butane FOB NWE Seagoing Coaster (PMAAL00)

Platts Butane FOB ARA Barge (PMAAC00)

Platts Butane FOB West Med Seagoing Coaster (PMAAM00)

Previously, manual bids and offers where pricing is wholly or partly based on a percentage of naphtha were able to increase by a maximum of 0.25% and a minimum of 0.1% of CIF NWE naphtha every 60 seconds.

Following the launch of percentage of naphtha pricing functionality on eWindow, the minimum increment has increased to 0.25% of CIF NWE naphtha every 60 seconds, while the maximum increment remains at 0.25% of CIF NWE over the same time period.

The changes do not impact existing timing and incrementability standards for outright and floating bids and offers published in the MOC process.

The changes were first proposed in a subscriber note published April 29: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/042924-platts-proposes-changes-to-incrementability-guidelines-for-european-lpg-priced-as-percentage-of-naphtha-from-june-3

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers in the MOC process, in order to ensure an orderly and transparent price assessment process, which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/oil/oil-timing-and-increment-guidelines.

Please send any comments or questions to europe_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 to the public upon request.