28 Aug 2024 | 15:20 UTC

Platts seeks feedback on Asia MTBE coverage

Platts, part of S&P Global Commodity Insights, is opening a consultation on its MTBE coverage in Asia, including its benchmark FOB Singapore assessment with a focus on the following aspects of the current methodology specifications.

Laycan

Platts is considering aligning the MTBE loading window with that of the 92 RON gasoline market.

MTBE, which is predominantly used as a gasoline blending component, is currently assessed for loading on FOB Singapore basis 15-40 days forward from the date of publication.

In contrast, the 92 RON unleaded FOB Singapore gasoline assessment reflects product loading 15-30 days forward from the date of publication.

Spread to gasoline

MTBE is often valued and traded as a spread to gasoline, and Platts is looking to potentially database and use this information in its assessments.

Platts is also seeking market participants' input regarding the following aspects:

  • Pricing basis for the spread: Which RON gasoline and over what period of time is typically used for the invoicing of the trades executed as a spread to gasoline. Platts is keen to understand whether the traded spread is usually perceived as a simple day-on-day cash differential between MTBE and gasoline prices or whether the spread represents a hedgeable floating premium over gasoline prices around the time of loading.
  • Units of measurement: MTBE is assessed in $/metric ton and gasoline is assessed in $/barrel. Platts is seeking feedback on which denomination would be the most relevant to express the spread in.
  • Location basis: Platts is seeking feedback on whether the introduction of the spread is relevant for both FOB Singapore and FOB China MTBE assessments.

Parcel size

Platts has observed that, in addition to standard 2,000-metric-ton and 3,000-metric-ton parcels, MTBE is frequently traded in 5,000-metric-ton lots. Platts is therefore seeking feedback on whether an expansion of the cargo sizes to include the 5,000-metric-ton lots would allow to capture additional liquidity (or "would be representative of mainstream spot liquidity") in the benchmark assessment. In addition, Platts is seeking feedback on whether there should be any amendment to current standard parcel sizes of 2,000 metric tons and 3,000 metric tons.

Platts also invites feedback on any other aspects of the MTBE coverage in Asia.

The current consultation period concludes on Sept. 12. If the feedback received during this consultation results in a proposed methodology change to the Asia MTBE assessments, Platts would issue a separate proposal note.

Platts understands that any possible changes in the areas of consideration above may affect existing eWindow instruments.

Platts also seeks feedback on the implementation period of any potential methodology changes arising from this consultation given the possible impact on existing term contracts.

Please send all comments, feedback and questions to petchems@spglobal.com and pricegroup@spglobal.com by Sept. 12, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Refined Products, Gasoline

August 28, 2024

Platts seeks feedback on Asia MTBE coverage

Platts, part of S&P Global Commodity Insights, is opening a consultation on its MTBE coverage in Asia, including its benchmark FOB Singapore assessment with a focus on the following aspects of the current methodology specifications.

Laycan

Platts is considering aligning the MTBE loading window with that of the 92 RON gasoline market.

MTBE, which is predominantly used as a gasoline blending component, is currently assessed for loading on FOB Singapore basis 15-40 days forward from the date of publication.

In contrast, the 92 RON unleaded FOB Singapore gasoline assessment reflects product loading 15-30 days forward from the date of publication.

Spread to gasoline

MTBE is often valued and traded as a spread to gasoline, and Platts is looking to potentially database and use this information in its assessments.

Platts is also seeking market participants' input regarding the following aspects:

  • Pricing basis for the spread: Which RON gasoline and over what period of time is typically used for the invoicing of the trades executed as a spread to gasoline. Platts is keen to understand whether the traded spread is usually perceived as a simple day-on-day cash differential between MTBE and gasoline prices or whether the spread represents a hedgeable floating premium over gasoline prices around the time of loading.
  • Units of measurement: MTBE is assessed in $/metric ton and gasoline is assessed in $/barrel. Platts is seeking feedback on which denomination would be the most relevant to express the spread in.
  • Location basis: Platts is seeking feedback on whether the introduction of the spread is relevant for both FOB Singapore and FOB China MTBE assessments.

Parcel size

Platts has observed that, in addition to standard 2,000-metric-ton and 3,000-metric-ton parcels, MTBE is frequently traded in 5,000-metric-ton lots. Platts is therefore seeking feedback on whether an expansion of the cargo sizes to include the 5,000-metric-ton lots would allow to capture additional liquidity (or "would be representative of mainstream spot liquidity") in the benchmark assessment. In addition, Platts is seeking feedback on whether there should be any amendment to current standard parcel sizes of 2,000 metric tons and 3,000 metric tons.

Platts also invites feedback on any other aspects of the MTBE coverage in Asia.

The current consultation period concludes on Sept. 12. If the feedback received during this consultation results in a proposed methodology change to the Asia MTBE assessments, Platts would issue a separate proposal note.

Platts understands that any possible changes in the areas of consideration above may affect existing eWindow instruments.

Platts also seeks feedback on the implementation period of any potential methodology changes arising from this consultation given the possible impact on existing term contracts.

Please send all comments, feedback and questions to petchems@spglobal.com and pricegroup@spglobal.com by Sept. 12, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.