SUBSCRIBER NOTE: Platts to amend Japan rack, waterborne A-Fuel oil assessments

S&P Global Platts is lowering the maximum sulfur content in its Japan domestic rack and waterborne high sulfur A-Fuel oil assessments to 0.5% from October 1, 2019, following a period of market research. The decision comes on the back of major refiners announcing that they will stop supplying high sulfur A-Fuel to the Japanese domestic market between early and mid-October and switch supply to 0.5% material, almost three months ahead of the planned introduction of new sulfur limits in marine fuels by the International Maritime Organization from January 1, 2020. As a result of the cut in the maximum sulfur content from 1% currently, the product will be renamed as A-Fuel oil. With the lowering of the maximum sulfur content, Platts Japan AFO assessments will reflect standard Japanese Industrial Standard, JIS K 2205 (Class 1 No. 1) specifications from October 1, replacing the JIS K 2205 (Class 1 No. 2) standard used for the current HSAFO assessments. To reflect the different level of sulfur in historical and current data, Platts will launch new symbol codes for the sulfur content to distinguish between HSAFO 1% and AFO 0.5%.

The following assessments will be affected by the change:

HS A-Fuel Oil Rack Daily Assessments HS A-Fuel Oil Tokyo Bay PJPAV00 HS A-Fuel Oil Kanagawa PJPCD00 HS A-Fuel Oil Chiba PJPCE00 HS A-Fuel Oil Chukyo PJPDB00 HS A-Fuel Oil Hanshin PJPDC00

HS A-Fuel Oil Rack Monthly Averages HS A-Fuel Oil Tokyo Bay PJPAV03 HS A-Fuel Oil Kanagawa PJPCD03 HS A-Fuel Oil Chiba PJPCE03 HS A-Fuel Oil Chukyo PJPDB03 HS A-Fuel Oil Hanshin PJPDC03

HS A-Fuel Oil Waterborne Daily Assessments HS A-Fuel Oil LC1 FOB Tokyo Bay PJPAE00 HS A-Fuel Oil LC2 FOB Tokyo Bay PJPBU00 HS A-Fuel Oil LC1 FOB Chukyo PJPAK00 HS A-Fuel Oil LC2 FOB Chukyo PJPBV00 HS A-Fuel Oil LC1 FOB Hanshin PJPAQ00 HS A-Fuel Oil LC2 FOB Hanshin PJPBW00 HS A-Fuel Oil LC1 FOB Onishi PJPCM00 HS A-Fuel Oil LC2 FOB Onishi PJPCS00

HS A-Fuel Oil Waterborne Monthly Averages LC1 FOB Tokyo Bay PJPAE03 LC1 FOB Chukyo PJPAK03 LC1 FOB Hanshin PJPAQ03 LC1 FOB Onishi PJPCM03

Platts has no plans to change other aspects of the methodology for HSAFO/AFO. Please send all questions and comments to oilgroup@spglobal.com, pricegroup@spglobal.com and pl_tk_japanoil@spglobal.com. 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.