SUBSCRIBER NOTE: Platts plans to amend laycans in Japan domestic products

Following industry feedback, Platts proposes to amend the loading laycans reflected in all its Japan domestic oil products waterborne prices assessments to align it more closely with prevailing industry conventions, with effect from August 1, 2016.

Platts proposes to assess the value of Gasoline, Gasoil, Kerosene, High Sulfur Fuel Oil A and Low Sulfur Fuel Oil A for loading on an FOB basis reflecting two half-month time cycles.

Platts currently publishes assessments across the country reflecting oil products for loading at port 7 to 20 days from the day of assessment. Under the proposal, these assessments would be based on the average of the assessments of two half-month cycles for each product. Platts would publish the two half-month cycles alongside the existing assessments.

The changes would apply to all Platts assessments for barges loading from all locations (currently Tokyo Bay, Hanshin and Chukyo).

Platts proposes to implement the changes from August 1, 2016 when it would begin to publish bids, offers, trades and assessments for H1 August and H2 August.

TIMINGS: Under the proposed changes the last publishing day for H1 would be the 10th calendar day of the month and the last publishing day for H2 would be the 25th calendar day of the month. When these dates are not a business day in Japan the last publishing day would be the preceding business day.

For example on August 26, Platts would publish assessments for cargoes loading H1 September (September 1-15) and H2 September (September 16-30). Platts would publish bids, offers, trades and assessments for the two laycans until September 10th.

From September 11th, Platts would be assessing value of cargoes loading H2 September (September 16-30) and H1 October (October 1-15).

From September 26th and until October 10th, the assessment laycans would reflect cargoes loading H1 October (October 1-15) and H2 October (October 16-31).

ASSESSMENT: Under the proposed changes, the key assessments for each product would be based on the average of the two assessed half-month cycles. For example, on August 26, the FOB Tokyo Bay Gasoline assessment would be the average of the H1 September and H2 September assessments, until September 10. From September 11th, the assessment would be based on the average of the H2 September and H1 October assessments, until September 25.

NOMINATIONS: Under the proposal, the buyer would nominate a three-day laycan at least two business days prior to the first day of the nominated laycan, or immediately after trade in the event of prompt nominations, and provide necessary barge details. The seller should notify the buyer of barge acceptance and nominate the loading terminal and loading day not later than the business day following receipt of the nomination.

Confirmed trades, bids and offers reported throughout the day will be included in the assessment process, with values normalized towards representative values for the close of the market as needed. Platts editorial standards for the Market On Close assessment process for FOB Waterborne Japan fuel oil, gasoil, gasoline and kerosene calls for best practices in all aspects of operational performance, including terminal and vessel nominations.

Please send all feedback and questions by June 28, 2016. to asia_products@platts.com, with a cc to pricegroup@platts.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.