SUBSCRIBER NOTE: Platts to reflect specs for CFR Korea naphtha assessments

Following market feedback, S&P Global Platts will amend the minimum paraffin level to a minimum of 70% from the current 65% in its assessments of naphtha cargoes delivered to South Korea, effective October 2, 2017.

In addition, Platts is proposing to reflect a maximum of 3 ppm carbon disulfide in its assessments for naphtha cargoes delivered to South Korea.

Under the proposal, the Platts C+F South Korea naphtha outright assessments and the C+F South Korea naphtha spot differential assessments will begin reflecting the new naphtha specifications from October 2.

The updates to the naphtha specification for cargoes being delivered to South Korea will not affect the current C+F Japan naphtha assessment methodology.

As stated in Platts published methodology, buyers entering into a CFR Japan naphtha trade during the Platts Market on Close assessment process have the right to request a deviation of the ship to another port, including ports in South Korea, provided the shipowner has granted, or has the ability to grant, the deviation to the charterer.

Any incremental expenses associated with the deviation are borne by the buyer as it is initiating the request for the deviation. Charges incurred because of the deviation must be transparent and be granted at cost and in line with normal market practices. Platts will monitor such charges if they result in anomalies.

Previously, the C+F South Korea CFR differential assessments reflected the same specifications that are reflected in C+F Japan naphtha assessments. However, Platts now proposes to amend these to reflect a naphtha grade that closely reflects the quality of naphtha delivered to South Korea.

Naphtha specifications differ from country to country in North Asia. The proposed naphtha specification represents a grade that is deliverable to the country.

Platts began publishing naphtha outright assessments on a C+F South Korea basis from June 1, 1998.

Platts will consider bids, offers and interest to trade C+F South Korea cargoes, typically 25,000 mt, reflecting the proposed specifications for delivery 45 to 75 days from the date of assessment, as a cash differential to Mean of Platts Japan naphtha assessment.

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