Platts to launch East China propane, butane physical assessments Oct 1

Platts, part of S&P Global Commodity Insights, will launch propane and butane physical assessments on a CFR East China basis from Oct. 1, amid an increase in LPG inflows into the region.

Platts will publish four new daily CFR East China LPG physical assessments and their respective monthly averages. The four new daily assessments will include assessments for refrigerated propane and butane cargoes with a minimum size of 11,000 mt and a maximum size of 44,000 mt, for delivery 20-35 days forward, on an outright basis, as well as their cash differentials to the front-month Saudi Aramco contract price (M1) derivatives.

Details of the new Platts East China LPG assessments are as follows:

The new assessments were first proposed in a subscribe note published July 12.

Discharge ports: The assessments reflect cargoes delivered into Ningbo. Deliveries into other safe and sound ports in Zhejiang and Jiangsu provinces of East China may be considered for inclusion in the assessments, normalized to a Ningbo basis.

Product specifications: The CFR East China propane and butane assessments reflect the existing Platts North Asia propane and butane specifications. For full details of the specification, please see: asia-refined-oil-products-methodology.pdf (spglobal.com).

Timestamp: The CFR East China propane and butane assessments will reflect the tradable value of these products at the end of the Platts Asia physical LPG Platts Market on Close assessment process at 5:00 pm Singapore time (0900 GMT). In the absence of any bids, offers or trades in the MOC, information heard in over-the-counter markets may be taken into consideration.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers during the MOC in order to ensure an orderly and transparent price assessment process. Details can be found in this guide: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/oil-timing-increment-guidelines.pdf.

Please send comments and questions to asia_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.