SUBSCRIBER NOTE: Platts to rename Japan domestic HSAFO eWindow as AFO on Oct 1

S&P Global Platts has started facilitating the Market on Close assessment process for Japan domestic rack and waterborne A-Fuel oil (AFO) instruments on eWindow on October 1, 2019, in line with the lowering of maximum sulfur content in these markets to 0.5% the same day.

The new instruments for AFO will replace high sulfur A fuel oil (HSAFO) instruments for rack and waterborne.

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

For rack, AFO prices are assessed for loading at two locations in Tokyo Bay namely Chiba and Kanagawa, and at locations in Chukyo and Hanshin, in line with the methodology for Japan rack oil products.

For waterborne, AFO prices are assessed for loading at locations in Tokyo Bay, Chukyo, Hanshin and Onishi, in line with the methodology for Japan waterborne oil products. For a complete list of refineries and terminals, please refer to the methodology guide at http://plts.co/fc3030pAX7U. Participants in the Platts MOC assessment process will be able to submit bids and offers for publication directly through the eWindow software, or through an editor, who will then publish bids and offers using the software.

Participants in the MOC process can opt to submit bids, offers or interest to trade on either an open-origin or an ex-refinery basis.

Bids, offers and trades for rack appear in the eWindow software under the product names "Platts Japan Rack AFO" and "Platts Japan Rack AFO (Ex Refinery)."

Bids, offers and trades for waterborne appear in the eWindow software under the product names "Platts Japan AFO" and "Platts Japan AFO (Ex Refinery)."

Trades done on open-origin basis give the seller the option to nominate loading from a refinery or tank facilities.

An ex-refinery bid or offer would represent barrels loading exclusively from refineries at the respective locations.

TIME & LOCATION: For rack, Platts will publish AFO price assessments for oil products loading on trucks from specified refineries or storage terminals in Chiba, Kanagawa, Chukyo and Hanshin, one to seven days forward from the day of publication.

For waterborne, Platts will publish AFO price assessments for oil products loading on barges from specified refineries or storage terminals in Tokyo Bay, Chukyo, Hanshin and Onishi for two consecutive half-month laycans, named LC1 and LC2.

On October 1, LC1 would be first half of October and LC2 the second half of October. The half-month laycans roll over each 11th and 25th day of the month.

Headlines generated by the software on Platts Global Alert carry the prefixes according to the product. For rack, "Platts Japan Rack AFO" and "Platts Japan Rack AFO (Ex Refinery)" and for waterborne, "Platts Japan AFO" and "Platts Japan AFO (Ex Refinery)."

Headlines will be posted on Platts Global Alert page 190 and on the Japan Dashboard on the website https://jpn.platts.com. VOLUME: Bids and offers on the rack eWindow can be posted at a minimum size of 50 kiloliters, and at a maximum size of 200 kiloliters. Bids and offers on the waterborne eWindow can be posted at a minimum of 500 kiloliters, and with a maximum size of 2,000 kiloliters.

INCREMENTABILITY: The amount that a bid can be increased or an offer decreased is in Yen 10/kl increments, with a maximum of Yen 100/kl. The minimum time interval between two price changes is 60 seconds.

The eWindow software automatically matches bids and offers for Japanese domestic rack and waterborne oil products when prices posted by companies that can mutually trade reach the same price level for the same product and loading dates, and a trade is reported. Platts assesses open origin cargoes.

If a seller wants to specify the loading location such as refinery, refinery supplier and tank, they may enter this in their offer. For buyers, they cannot indicate the refinery, refinery supplier or tank they wish to take delivery from.

Platts expects credit relationships that prevail inside its assessment environment to fully reflect relationships in the market as a whole. Where Platts editors publish bids and offers on behalf of a company that submits data to an editor, counterparty credit settings are set to "open" for regular participants in the assessment process, unless companies have notified Platts in advance of any restrictions.

If you are submitting information through an editor and have not already notified Platts of any counterparty credit restrictions, please provide notification at least one hour prior to the start of the MOC process if any counterparty credit filters need to be modified.

eWindow provides direct entry and management of credit filters, which should be those normally applied in the marketplace, for companies participating directly through the software. Platts provides training to participants interested in learning the use of the software.