Platts to change specifications, laycans and delivery ports of CFR India toluene assessment

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

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

The changes were proposed in a subscriber note published June 5 (https://bit.ly/2BGPn1A).

DELIVERY LAYCAN

Platts will 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 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 will reflect cargoes for delivery into Kandla and Mumbai on West Coast India. Bids, offers, trades and indications heard for delivery into other Indian ports may 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 will also 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, the 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.

At the same time, Platts will change the weekly CFR India toluene assessment into a daily assessment, and launch a daily CFR India cash differential assessment against its existing FOB Korea toluene assessment from August 3, 2020 as proposed in a subscriber note published here (https://bit.ly/3eE6orR).

The weekly assessment currently 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. The daily assessment will continue to be published on these existing pages, in addition to page 218.

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

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