Platts changes specifications, laycans and delivery ports of CFR India toluene assessment

The changes are in response to a shift in trading dynamics that Platts has observed in the Indian toluene market over the last few years, amid rising imports into the South Asian country.

Platts first proposed these changes in a subscriber note published June 5 (https://bit.ly/2BGPn1A).

DELIVERY LAYCAN

Platts has changed the delivery laycan of its CFR India assessment to reflect the third half-month cycle, from the current 20-40 days forward from the date of publication, to reflect current standard market practice of trading on half-month cycles.

The half-month assessment laycan covers 13, 14, 15 or 16 days (if a 28, 29, 30 or 31-day month), and will roll over on the 1st and 16th day of each calendar month. If the 1st and 16th day of the calendar month falls on a weekend or public holiday in Singapore, the laycan will roll over on the next business day. For example, on Aug. 1, the half-month laycan assessed would be H1 September. On Aug. 16, the half-month laycan assessed would be H2 September.

DELIVERY PORTS

Platts CFR India assessment reflects only cargoes for delivery into Kandla and Mumbai on the west coast. Bids, offers, trades and indications heard for delivery into other Indian ports may be normalized to Kandla and/or Mumbai basis.

Previously, the Platts CFR India assessment reflected cargoes for delivery into Kandla, Mumbai, and Visakhapatnam on the east coast. Platts understands most spot cargoes are sold into Kandla and Mumbai, with limited trade activity into Visakhapatnam heard.

QUALITY SPECIFICATIONS

Platts has added a minimum purity content of 99.5% to the quality specifications reflected in its CFR India assessment.

Platts understands that toluene with a minimum purity content of 99.5% is considered broadly deliverable into India, as imports are mainly used for solvent application, toluene diisocyanate production and the production of other chemicals, the majority of which requires a minimum purity level of 99.5%. In comparison, toluene is also used for gasoline blending outside of India.

Currently, all of Platts' toluene assessments reflect nitration-grade conforming to the latest edition of international standard ASTM D-841. From Aug. 3, 2020, the CFR India assessment would continue to reflect nitration-grade conforming to the latest edition of international standard ASTM D-841, but with the new minimum purity content.

Also from Aug. 3, 2020, Platts has changed the frequency of the CFR India toluene assessment to a daily assessment, and has launched a daily CFR India cash differential assessment against its existing FOB Korea toluene assessment (https://bit.ly/33lr5pS).

These assessments appear in Asian Petrochemicalscan and Platts Petrochemical Alert pages 218, 235, 326, 436 and 449 under the price database codes below:

Assessment Daily Monthly average

Toluene CFR India AAVBQ04 AAVBQ03

Toluene CFR India cash differential AATBR00 AATBR03

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