Platts launches low-carbon Japan Korea Ammonia Price assessment

Platts, part of S&P Global Commodity Insights, has launched a new daily, market-based low-carbon ammonia assessment, the Japan Korea Ammonia Price (JKAP), effective Sept. 4.

The new assessment, CFR basis Japan and South Korea, represents the market price of ammonia with a maximum carbon intensity of 40g CO2eq/MJ. This assessment will bring transparency to the growing market of low-carbon ammonia, driven by non-traditional sectors, notably power generation.

JKAP will consider market information reported to Platts and will be published throughout the day, including firm bids and offers, trades and indicative values, as well as any other data deemed relevant to the assessment process.

The assessment will appear in the Fertecon Ammonia Daily Price Report publication and the Platts Hydrogen Daily, as well as in the Platts price database under the assessment code AJKCA00.

As part of this launch, Platts will also produce an equivalent daily $/MMBtu assessment, which can be found under the assessment code AJKCB00.

They will follow the London holiday calendar.

Details of the physical ammonia assessment are as follows:

Japan/Korea Ammonia Price (JKAP)

Quality: Anhydrous ammonia, which is around 82% nitrogen and stored and transported as a liquid under pressure at around minus 33 degrees Celsius

Quantity: 15,000-25,000 mt, normalized where necessary to 15,000 mt

Basis and location: Spot, CFR Japan and South Korea, basis Nagoya

Carbon Intensity: Maximum 40g CO2eq/MJ (roughly equivalent to 720 kg CO2eq/mt ammonia) gate to gate, excluding transportation to the point of CFR delivery

Timing: Product to be loaded one to six weeks forward

Frequency: Daily, 1630 London timestamp

Appears in: Fertecon Daily Ammonia Price Report, Platts Hydrogen

Daily Unit of assessment: US dollars per mt

Platts originally proposed the launch of the JKAP assessment on July 4 in a subscriber note available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/070423-platts-proposes-launch-of-low-carbon-japankorea-ammonia-assessment

Platts then announced its decision to launch the JKAP assessment on Aug. 4 in a subscriber note available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080423-platts-to-launch-low-carbon-japankorea-ammonia-assessment

Please send any further questions and comments to Fertilizer@spglobal.com, Platts_Carbon@spglobal.com, and PriceGroup@spglobal.com.

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