Platts proposes amending specifications, laycans and delivery ports for CFR India toluene assessment

S&P Global Platts is proposing to change the delivery laycan and delivery ports and to add a minimum purity content of 99.5% to the quality specifications reflected for the CFR India assessment from August 3, 2020.

The proposed changes are in response to a shift in trading dynamics that Platts has observed into the Indian toluene market over the past few years, amid rising imports into the country.

DELIVERY LAYCAN

Platts is proposing to change the delivery laycan of its CFR India assessment to reflect the third half-month cycle, from the current 20-40 days forward from the date of publication, to reflect current standard market practice of trading on half-month cycles.

The proposed half-month assessment laycan covers 13, 14, 15 or 16 days (if a 28, 29, 30 or 31-day month), and will roll over on the 1st and 16th day of each calendar month.

If the 1st and 16th day of the calendar month falls on a weekend or public holiday in Singapore, the laycan will roll over on the next business day.

For example, on August 1, the half-month laycan assessed would be H1 September. On August 16, the half-month laycan assessed would be H2 September.

DELIVERY PORTS

Platts is proposing to reflect only cargoes for delivery into Kandla and Mumbai on West Coast India.

Bids, offers, trades and indications heard for delivery into other Indian ports will be normalized to Kandla and Mumbai basis.

Currently, Platts CFR India assessment reflects cargoes for delivery into Kandla, Mumbai, and Visakhapatnam on East Coast India.

Platts understands most spot cargoes are sold into Kandla and Mumbai, with limited trade activity into Visakhapatnam heard.

QUALITY SPECIFICATIONS

Platts is also proposing to add a minimum purity content of 99.5% to the quality specifications reflected in its CFR India assessment.

Platts understands that toluene with a minimum purity content of 99.5% is currently considered broadly deliverable into India, as imports are mainly used for solvent application, toluene diisocyanate production and the production of other chemicals, majority of which requires a minimum purity level of 99.5%.

In comparison, toluene is also used for gasoline blending outside of India.

Currently, all of Platts toluene assessments reflect nitration-grade conforming to latest edition of international standard ASTM D-841.

Following the proposed change, the CFR India assessment will continue to reflect nitration-grade conforming to latest edition of international standard ASTM D-841, but with the new minimum purity content.

The assessment appears in Asian Petrochemicalscan and Platts Petrochemical Alert pages 235, 326, 436 and 449 under the price database code AAVBQ04 and monthly average price database code of AAVBQ03.

Please send any feedback, comments or questions to pricegroup@spglobal.com and petchems@spglobal.com by June 26.

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.