Platts to discontinue FOB China 90 RON gasoline assessment, amend 93 RON to 92 RON

Following market feedback, S&P Global Platts will discontinue the South China 90 RON gasoline assessment and change the South China 93 RON gasoline assessment to reflect a 92 RON grade from August 3, 2020.

This decision follows a March 13 proposal in lieu of rising gasoline exports from South China for 92 RON oxygenated gasoline, which is available here: http://plts.co/UHRh30qM8ip

Platts will rename the FOB South China 93 RON gasoline assessment to 92 RON. The renamed 92 RON assessment will carry the same price symbol code as the current 93 RON assessment.

Platts is also amending the cargo size, timing, and adding specifications reflected in the renamed South China 92 RON gasoline assessment.

The current 93 RON assessment reflects 25,000-30,000 mt 93 RON gasoline cargoes loading 15-30 days forward.

Following the change, the renamed 92 RON assessment will reflect 30,000-40,000 mt MR-sized 92 RON oxygenated gasoline cargoes loading 20-35 days forward, with guaranteed specifications adhering to China's National Phase 5 standards, where parameters include maximum 10 ppm sulfur content, benzene at maximum 1% by volume, aromatics at maximum 40% by volume and olefins at maximum 24% by volume.

Cargoes that differ from this specification will be considered for assessment and normalized to reflect the above quality.

The ports reflected in the South China assessment include Huizhou, Dongguan, Qinzhou, Quanzhou and Hainan. Cargo loadings from these ports will be considered for assessment, while loadings from other ports will be normalized to Huizhou basis.

The assessment will reflect market value at the close of Asian trade at 4:30 pm Singapore time (0830 GMT) and follows the Singapore publishing schedule.

The discontinuation of 90 RON gasoline assessment and renaming of 93 RON to 92 RON grade come as exports of 90 RON and 93 RON gasoline from China have ceased, and replaced predominantly by 92 RON gasoline and some 91 RON gasoline. In particular, South China became a regular source of spot 92 RON gasoline cargoes after CNOOC completed expansion of its Huizhou refinery in late 2017.

This market typically trades at a differential to Singapore 92 RON unleaded assessments. From August 3, 2020, Platts will publish an outright price for FOB South China 92 RON gasoline in $/mt, rounded to the nearest 25 cents/mt using a conversion factor of 8.5.

Under the proposal, the following assessment would be discontinued.

ASSESSMENT CODE MAVG

Gasoline Unl 90 FOB South China AAICU00 AAICV00

The 93 RON assessment would be renamed to 92 RON. The code remains unchanged.

ASSESSMENT CODE MAVG

Gasoline Unl 92 FOB South China AAICW00 AAICX00

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