SUBSCRIBER NOTE: Platts proposes to launch yuan conversion for paraxylene

S&P Global Platts is seeking feedback on a proposal to launch a daily East China basis yuan conversion of the first published laycan of the CFR Taiwan/China paraxylene (PX) assessment from November 1, 2019.

This is in anticipation of changes in spot trading activity upon the start up of numerous Chinese PX plants. The addition of yuan-denominated PX will enhance the usability of the Platts assessments in the domestic Chinese market.

The conversion will be calculated on a daily basis using a dollar/yuan rate (symbol AAWFW00) published daily on working days in Singapore, sourced from the Bank of China, and also consider the prevailing import duty and value added tax.

For example, on November 1, the East China converted price would reflect the assessed dollar/mt price of the first published laycan (H2 November) in the CFR Taiwan/China assessment, multiplied by the dollar/yuan rate (AAWFW00), and the prevailing import duty and VAT.

Platts publishes five laycans in the Asian Paraxylene CFR Taiwan/China assessment in dollar/mt, with the marker (symbol AAQNE00) representing the average of the third, fourth and fifth published laycans.

Platts will continue to monitor the market for developments and welcomes any feedback around standard trading and operational procedure for domestic yuan-denominated paraxylene spot trades, going forward.

Please direct any questions or comments to petchems@spglobal.com with a copy to pricegroup@spglobal.com. For written comments, please provide a clear indication if they are not intended for publication by Platts for public.