Platts launches daily PX CFR NE Asia near-haul assessments

Platts, part of S&P Global Commodity Insights, launched daily spot assessments for near-haul deliveries of paraxylene (PX) CFR Northeast Asia (NEA) on Oct. 2.

The new assessment reflects typical near-haul flows of paraxylene into China from nearby countries, including, but not limited to, ports in Japan and Korea. It reflects deliveries with the following terms and specifications:

Size: 5,000 mt cargoes delivered on 5,000-20,000 dwt vessels.

Credit terms: Standard credit terms as per market practice for near-haul cargoes concluded on an LC 30 days basis, although, there are variations on payment terms.

Discharge ports: The new assessments will reflect values of deliveries with a single or double port discharge. In case of more than two discharge ports, the sellers will be expected to deliver the cargo as either the first or second stop.

Delivery Laycans: Platts will publish the CFR NEA assessments for near-haul deliveries for the second, third, fourth, fifth and sixth half-month windows forward from the date of the assessment.

Marker: The daily near-haul PX CFR NEA marker averages the fourth and fifth half-month laycans. For example, on Oct. 1, the marker will average H2 November and H1 December. From Oct. 16, the marker would average H1 December and H2 December.

Platts understands that active trading moves from a combination of M+1 and M+2 (where "M" stands for the month of the trade) in the first half of the month to M+2 after the declaration of ports, which normally happens on the 15th. The new CFR NEA near haul marker does not include the third half month laycan to avoid reflecting cargoes already declared for delivery into specific ports.

Other terms and specifications, including basis and locations, will mirror the existing PX CFR Taiwan/China benchmark as stated here. (/content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Asia_Pacific_Petrochemicals.pdf)

These assessments will be published on Platts Petrochemical Alert pages 214, 337, 412, 436, 542, 600 and Asian Petrochemicalscan.

Background

The majority of China's PX imports come from countries in the surrounding region, such as South Korea, Japan, Taiwan and countries of Southeast Asia, according to official import statistics. The share of PX imports from other origins, including India and the Middle East, have been steadily decreasing over the past several years, falling to 6.6% in 2022 and less than 4%, based on data available for 2023 to date. The near-haul supply into China can usually be delivered to customers more quickly and on smaller vessels, minimizing logistical costs and uncertainties.

eWindow

Platts eWindow instruments will remain unchanged at this point, and market participants may continue reporting their bids, offers and intentions to trade in the applicable manner. For cargoes without origin restrictions, market participants are expected to use standard PX instruments. Offers of "Asian origin" cargoes may be reported through either instrument. Cargoes, used for the performance of the trades, are expected to meet standard buyer's expectations. Bids, offers and trades, which reflect specifications, terms and optionality different from the Platts standards, may be reflected, subject to normalization and editorial judgement.

Separately, Platts continues to collect feedback on its existing CFR Taiwan/China PX benchmark. (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/091823-platts-seeks-feedback-on-its-asian-px-methodology)

Please send all questions and comments to petchems@spglobal.com and pricegroup@spglobal.com.

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