Platts adds incrementability guidelines for European LPG priced as a percentage of naphtha from July 5

Platts, part of S&P Global Commodity Insights, has included new incrementability guidelines for manual bids and offers in the Platts Market on Close assessment process for European LPG where pricing is wholly or partly based on a percentage of Platts CIF NWE naphtha, with effect from July 5, 2023.

Manual bids and offers where pricing is wholly or partly based on a percentage of naphtha will be able to increase by a maximum of 0.25% and a minimum of 0.1% of CIF NWE naphtha every 60 seconds.

The launch follows a proposal published April 14, in which Platts had proposed allowing bids and offers to improve by a maximum of 1% and minimum of 0.25% of naphtha every 60 seconds. That proposal can be found here.

Market feedback received during an extended feedback period that ended May 12 was supportive of Platts revising the proposal to limit price moves to a smaller percentage of naphtha. In order to ensure that all published MOC data is fully tested in the market, Platts has established incrementability guidelines that detail how quickly bids and offers may be improved, when they have been published, and by what amount.

Platts may notify the market of any adjustment to the standard increments in the event of market volatility or a disruptive event. Other timing guidelines for bids and offers based wholly or in part on a percentage of naphtha will follow existing guidelines applicable to cargoes, coasters and barges as appropriate.

Full details of the current Platts guidelines for timings and increments in oil markets are available here.

Please send any comments to europe_products@spglobal.com with a copy to 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.