Platts proposes to publish FOB US paraxylene assessment as freight netback

Platts, part of S&P Global Commodity Insights, is proposing to amend its FOB US Gulf paraxylene assessment to reflect a freight netback from its CFR Taiwan/China paraxylene marker, effective Oct. 3, 2022.

Platts proposes to calculate the FOB USG paraxylene assessment (AAUXG00) as a netback from its CFR Taiwan/China assessment (AAQNE00) using the following Platts freight assessment:

The netback formula would be based on the CFR Taiwan/China paraxylene marker less US Gulf to Taiwan freight.

As a result of this change, Platts would no longer reflect observed spot market information in the assessment. The published value would at all times instead reflect the netback calculation.

Platts understands the paraxylene spot market in the US has become illiquid in recent years. The heavy reliance on contract pricing mechanisms has led to a sharp decrease in spot market information. Platts has observed that market participants typically evaluate the commodity based on a reference to the most liquid international paraxylene markets, in particular the CFR Taiwan/China paraxylene marker.

Platts currently reflects in its CFR Taiwan/China marker a cargo size of 5,000 mt and delivery period that is an average of 4th (W4), 5th (W5) and 6th (W6) half-month laycans. 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 by Aug. 19, 2022. 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.