Platts to launch new CFR India methanol daily assessment Oct. 1

Following a period of feedback, S&P Global Platts will launch a new daily assessment for CFR India methanol that will reflect independent, spot physical market values on a delivered basis into India, effective Oct. 1, 2021.

Platts first proposed the new assessment in a subscriber note published July 26, 2021, and available at https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/072621-platts-proposes-to-launch-new-cfr-india-methanol-daily-assessment.

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

The assessment will 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 will 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 new assessment, Platts will not reflect trades of these supplies within its new CFR India methanol assessment.

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

Credit terms will 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, will take into consideration latest information sourced from the market up to close of Asian trade at 4:30 pm Singapore time (0830 GMT) and will follow the Singapore publishing schedule.

Its weekly average would be published at the close of Asian trade every Friday.

Separately, Platts will continue to publish its existing weekly CFR India methanol netback calculation every Wednesday and will rename it to Methanol CFR India (netback).

The calculation is based on the CFR China methanol assessment from which a netback to FOB Middle East is derived, using the Middle East-China freight assessment.

A net forward to CFR India is then produced, 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:

Code Current Description Description from Oct 1

AABAG00 Methanol CFR India Weekly Methanol CFR India (netback) Weekly

AABAH00 Methanol CFR India Mavg Methanol CFR India (netback) Mavg

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