Platts changes CIF NWE naphtha 12,500 mt operational tolerance pricing

S&P Global Platts has changed the operational tolerance pricing of 12,500-mt cargoes in its CIF NWE naphtha cargo Market on Close assessment process to a floating price basis from fixed, effective July 1, 2021.

The change brings operational tolerance pricing for 12,500-mt cargoes in line with the larger cargo sizes published in the CIF NWE naphtha cargo MOC process.

The physical CIF NWE naphtha cargo assessment (PAAAL00) reflects four cargo sizes: 12,500 mt, 24,000-28,000 mt, 28,000-32,000 mt and 32,000-36,000 mt, full or part-cargo, with the final assessment reflecting the most competitive (i.e. lowest value) of the four cargo sizes.

This change was first proposed in a note published Dec. 22, 2020, with an initial launch date of Feb. 22: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/122220-platts-proposes-cif-nwe-naphtha-12500-mt-operational-tolerance-pricing-change

Under the change, Platts reflects 12,500-mt CIF NWE naphtha bids, offers and trades where the volume operational tolerance is plus/minus 10%, with the latter valued after discharge on a floating price basis, on the mean of the Platts naphtha CIF NWE cargo assessment over five working days after completion of discharge (COD), plus or minus a differential.

Previously, for 12,500-mt cargoes in the CIF NWE naphtha MOC process, Platts reflected bids, offers and trades, where the volume operational tolerance was plus/minus 10%, but where pricing was equal to the main volume pricing.

Additionally, Platts wishes to remind market participants that main volume pricing and operational tolerance pricing are expected to be within a reasonable range, while accounting for market structure, in order to be reflected in the Platts Market on Close assessment processes.

Platts may review for publication instances where the two pricing elements are deemed to significantly diverge.

Please send any comments or feedback 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 upon request.