Platts launches consultation on benzene FOB Rotterdam assessment

S&P Global Platts is opening a formal consultation on its European benzene FOB Rotterdam 5-30 day spot assessment.

Platts has received initial feedback suggesting that FOB Rotterdam as currently specified has limited relevance in a predominantly CIF ARA European import market. Platts is therefore considering a range of options including:

• Widening FOB Rotterdam origin and cargo size specifications to reflect a deepsea export market.
• Introducing a fixed correlation between FOB Rotterdam and CIF ARA spot assessments.
• Discontinuing FOB Rotterdam to refocus on the more liquid CIF ARA market and Platts existing CIF ARA 5-30 day and month 1 to month 5 assessments.

Platts invites feedback on each of these options.

On the option to widen assessment specifications, Platts is seeking feedback on whether a broader origin basis and larger parcels would be more reflective of FOB market practice:

BASIS: Platts invites feedback on the most appropriate port basis, with initial feedback showing preference for FOB loadings in the Amsterdam-Rotterdam-Antwerp region over FOB Rotterdam.

CARGO SIZE, VESSEL: Platts invites feedback on the most liquid cargo size and vessel type for benzene exports from Northwest Europe. Current FOB Rotterdam methodology specifies a standard cargo size of 1,000 mt and reflects barge loadings.

DISCHARGE: Platts invites feedback on typical trade routes for FOB volumes and typical ports of discharge.

Platts also seeks feedback on the timing of any potential methodology change that may emanate from the consultation phase.

Please send all questions and comments to petchems@spglobal.com and pricegroup@spglobal.com by Oct. 9, 2020.

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

Platts will consider all comments received and will make comments not marked as confidential available upon request.