Platts proposes to launch new CFR India methanol daily assessment

S&P Global Platts is proposing to launch a new daily assessment for CFR India methanol that would reflect independent, spot physical market values on a delivered basis into India, effective Oct.1, 2021.

The new proposed daily assessment would reflect 5,000-10,000 mt cargoes for delivery 20-45 days forward from the date of publication into Kandla, Hazira and Mumbai in West Coast India.

The assessment would also reflect methanol with a minimum purity of 99.85%, maximum water content of 0.1% by total weight and maximum ethanol content of 50 ppm.

All published bids, offers and trade information for delivery into other ports in India such as Cochin, Mangalore or Visakhapatnam, and for other standards may be normalized to the proposed standards.

Platts proposes to reflect only non-sanctioned material in its CFR India methanol daily assessment.

Platts understands that individual companies may have trading limits with counterparties and that national legislation may prevent companies from dealing in materials of certain origins which includes embargoed material. As of July 2021, there are international sanctions on methanol supplies from countries including Iran and Venezuela. Under this proposal, Platts would not reflect trades of these supplies within its new CFR India methanol assessment.

Platts would collect, verify and publish price information pertaining to these supplies, clearly stating its origin, and may normalize it to the standard for assessment purposes.

Credit terms would be basis letter of credit (L/C) of up to 30 days. For deals with non-standard usance, the value of extra credit allowance will be factored in for price assessment.

The new CFR India methanol assessment, to be published in $/mt, would take into consideration latest information sourced from the market up to close of Asian trade at 4:30 pm Singapore time (0830 GMT) and would follow the Singapore publishing schedule. Its weekly average would be published at the close of Asian trade every Friday.

Separately, Platts would continue to publish its existing weekly CFR India methanol netback assessment every Wednesday, alongside the new proposed independent daily assessment.

The existing weekly CFR India methanol calculation and its associated monthly average would remain as a freight netback formula from the CFR China methanol assessment on Wednesdays after Oct. 1, 2021. 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.

The existing weekly CFR India methanol assessment appears in the Petrochemical service on the Platts Platform, in Asian Petrochemicalscan, Solventswire publications and Platts Petrochemical Alert pages 348, 412 and 449 under the following price database codes:

Assessment Code

Methanol CFR India Weekly AABAG00

Methanol CFR India Mavg AABAH00

Platts invites feedback on the proposal to petchems@spglobal.com and pricegroup@spglobal.com by August 13, 2021.

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.