SUBSCRIBER NOTE: Platts begins publishing CFR India methanol assessment as freight netback

S&P Global Platts has begun publishing the CFR India methanol assessment as a freight netback formula from its CFR China methanol assessment, effective July 3, 2019.

Following consultation and market feedback/ Platts has begun calculating the CFR India methanol assessment (AABAG00) as a netback from its CFR China methanol assessment (AAWAZ00) using the following Platts freight assessments:

Route Cargo size Symbol

Middle East -East China 10,000-12,000 mt ABMCA00

Middle East -India 10,000-12,000 mt ABMIA00

The netback formula is based on the CFR China methanol assessment to FOB Middle East using the Middle East China freight assessment and net forwarded to CFR India using the Middle East -India freight assessment.

Platts understands that spot trade into India has become increasingly fragmented, particularly around trade terms and conditions and a freight assessment is a more consistent representation of CFR spot value into India .

As background, the freight assessments were launched on March 1, 2019, as per the following subscriber note:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/030119-platts-launches-new-aromatics-freight-assessments

Platts reflects in its CFR India assessment a cargo size of 5,000-10,000 mt and delivery laycan of 20-40 days forward from date of publication.

Platts reflects in its CFR China assessment a cargo size of 5,000-10,000 mt and delivery laycan of 20-50 days forward from date of publication.

Platts is constantly reviewing its methodology to ensure assessments reflect standard traded parameters in a given market.

Please direct any questions or comments to petchems@spglobal.com with a copy to pricegroup@spglobal.com.

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