Platts proposes changes to Asian toluene assessments effective Jan 2, 2025

Platts, part of S&P Global Commodity Insights, proposes several changes to its Asia toluene coverage, effective Jan. 2, 2025. These would include updates to the methodology of the FOB Korea toluene benchmark and a discontinuation of the CFR China and CFR Southeast Asia assessments.

FOB KOREA

Platts proposes to update the product specifications and cargo sizes, reflected in the FOB Korea assessments, in line with the observed trading practice, and specify their merchantability requirements.

The current proposal is based on the feedback received during an extensive consultation, which Platts initiated on Dec. 22, 2023 here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122223-platts-seeks-feedback-on-its-asian-toluene-methodology.

Details of the proposed changes are as follows:

Specification: The assessments would reflect material with a minimum purity of 99.1%. The current methodology refers to ASTM D-841 testing method that specifies only a maximum of 1.2% deviance in the purity levels.

Cargo size: Platts proposes to reflect cargo sizes between 2,000 mt and 3,000 mt. Market information with non-standard quantity may be considered for the assessment and may be subject to normalization to the standard terms. Currently, Platts FOB Korea toluene assessment reflects cargo sizes of 2,000 mt.

Merchantability: Under the current proposal, Platts would reflect merchantable cargoes, which do not incur additional duties or restrictions when delivered into key consumption markets. For example, Platts understands that a significant quantity of toluene cargoes load on an FOB Korea basis and are consistently exported to the US and India.

These proposed changes would affect the price assessments under the following codes:

The affected assessments are published on the Platts Petrochemical Alert PCA0218, PCA0235, PCA0326, PCA0413, PCA0449 and PCA0542 in the Asian Petrochemicalscan and on PlattsConnect.

DISCONTINUATION OF CFR CHINA, FOB SOUTHEAST ASIA ASSESSMENTS

Platts also proposes to discontinue toluene CFR China and FOB Southeast Asia assessments to better reflect the changes in trade flows and a switch in price benchmarks used in contracts.

The proposed changes would affect the price assessments under the following codes:

The affected assessments are published on the Platts Petrochemical Alert PCA0218, PCA0235, PCA0326, PCA0413, PCA0449 and PCA0542 in the Asian Petrochemicalscan and on PlattsConnect.

Please send all feedback and comments to petchems@spglobal.com and pricegroup@spglobal.com by Aug. 31.

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.