SUBSCRIBER NOTE: Platts lowers max sulfur content Japan rack, waterborne AFO

S&P Global Platts has lowered the maximum sulfur content in its Japan domestic rack and waterborne high sulfur A-Fuel oil assessments to 0.5% from October 1, 2019, following a period of market research.

Platts first proposed the amendment to the sulfur level in a subscriber note published August 7 (http://plts.co/u4tK30pyyKM).

The decision to lower the maximum sulfur content had been made on the back of major refiners announcing they will stop supplying high sulfur A-Fuel to the Japanese domestic market between early and mid-October and switch to supplying 0.5% material, almost three months ahead of the planned introduction of the new sulfur limit in marine fuels by the International Maritime Organization from January 1, 2020.

As a result of the cut in the maximum sulfur content from 1% previously, the product has been renamed A-Fuel oil.

With the lowering of the maximum sulfur content, Platts Japan AFO assessments will reflect standard Japanese Industrial Standard, JIS K 2205 (Class 1 No. 1) specifications from October 1, replacing the JIS K 2205 (Class 1 No. 2) standard used for the previous HSAFO assessments.

The change will affect the following assessments:

HS A-Fuel Oil Rack Daily Assessments Price symbol codes HS A-Fuel Oil Tokyo Bay PJPAV00 HS A-Fuel Oil Kanagawa PJPCD00 HS A-Fuel Oil Chiba PJPCE00 HS A-Fuel Oil Chukyo PJPDB00 HS A-Fuel Oil Hanshin PJPDC00

HS A-Fuel Oil Rack Monthly Averages Price symbol codes HS A-Fuel Oil Tokyo Bay PJPAV03 HS A-Fuel Oil Kanagawa PJPCD03 HS A-Fuel Oil Chiba PJPCE03 HS A-Fuel Oil Chukyo PJPDB03 HS A-Fuel Oil Hanshin PJPDC03

HS A-Fuel Oil Waterborne Daily Assessments Price symbol codes HS A-Fuel Oil LC1 FOB Tokyo Bay PJPAE00 HS A-Fuel Oil LC2 FOB Tokyo Bay PJPBU00 HS A-Fuel Oil LC1 FOB Chukyo PJPAK00 HS A-Fuel Oil LC2 FOB Chukyo PJPBV00 HS A-Fuel Oil LC1 FOB Hanshin PJPAQ00 HS A-Fuel Oil LC2 FOB Hanshin PJPBW00 HS A-Fuel Oil LC1 FOB Onishi PJPCM00 HS A-Fuel Oil LC2 FOB Onishi PJPCS00

HS A-Fuel Oil Waterborne Monthly Averages Price symbol codes LC1 FOB Tokyo Bay PJPAE03 LC1 FOB Chukyo PJPAK03 LC1 FOB Hanshin PJPAQ03 LC1 FOB Onishi PJPCM03

To reflect the different level of sulfur in historical and current data, Platts has launched new symbol codes on October 1, 2019 for the sulfur content to distinguish between HSAFO 1% and AFO 0.5%. The sulfur content for rack will be published on Platts Global Alert page 2020, the Japan Dashboard, and databased under symbol code JPRXT00. The sulfur content for waterborne will be published on PGA page 2016, the Japan Dashboard, and databased under symbol code JPOXT00.

Platts has no plans to change other aspects of the methodology for HSAFO/AFO.

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