Platts to launch daily Asia bitumen assessments from November 1

S&P Global Platts plans to launch daily assessments for bitumen based on its Market on Close assessment methodology, providing greater price transparency and information in the waterborne trade for the product in the Asia-Pacific markets.

Following extensive consultation with market participants, Platts will begin publishing daily assessments for two grades of bitumen basis FOB Singapore and FOB South Korea starting Nov. 1.

Both assessments will reflect spot trading activity in 4,000-6,000 mt parcels loading 15-30 days forward from the date of publication. The assessments will reflect market value at the close of Asian trade at 4:30 pm Singapore time and follow the Singapore publication schedule. Bids, offers and trades reported throughout the day will be considered in the assessment process, with values normalized to market close at 4.30 pm Singapore time.

Both assessments will be published in US$/mt on an outright basis as well as a differential to benchmark Platts FOB Singapore 380 CST high sulfur fuel oil assessments. The differentials would represent the premium or discount over the 15-30 day forward MOPS Strip value assessed using 380 CST HSFO swaps. More details on the MOPS Strip methodology is available in the Asia Pacific and Middle East Refined Oil Products methodology guide available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/oil

Market participants may submit bids and offers on a fixed price basis, or on a floating price basis to the Mean of Platts Singapore 380 CST or 180 CST HSFO assessments. Market participants should specify loading for a five-day date range when submitting bids and offers for publication. Platts will publish bids, offers or expressions of interest to trade in the Asia bitumen MOC assessment process from all market participants that are already reviewed and approved to participate in the Asia HSFO MOC process. Companies can email pricegroup@spglobal.com to register to participate in the Asia bitumen MOC process.

FOB Singapore assessment: The FOB Singapore assessment will reflect bulk PEN 60-70 grade bitumen. The assessment will reflect loadings from all refineries and terminals in the Singapore Strait capable of handling bitumen. In addition, Platts would consider for publication bids, offers and trades from ports in Malaysia and Indonesia and may normalize them basis Singapore. Companies submitting their bids or offers for any non-FOB Straits loading port must specify it at the time of submitting their order to Platts for publication. Buyers or sellers cannot unilaterally change load port after conclusion of the trade.

FOB Singapore daily outright and differential assessments will appear in Platts Asia-Pacific/Arab Gulf Marketscan and on Platts Global Alert page 2002 under codes BTSGA00 and BTSGB00, respectively. The monthly averages of the daily outright and differential assessments will be published in Platts Global Alert page 2511 under codes BTSGA03 and BTSGB03, respectively.

FOB South Korea assessment: The FOB South Korea assessment will reflect bulk PEN 60-80 grade bitumen. The assessment will reflect loadings from ports of Yeosu, Ulsan/Busan, Daesan and Onsan. Platts would consider publication of bids, offers and trades from other South Korean ports and may normalize them basis Yeosu. Companies submitting their bids or offers for a location other than those listed above must specify it at the time of submitting their order to Platts for publication. Buyers or sellers cannot unilaterally change load port after conclusion of the trade.

The FOB South Korea daily outright and differential assessments will appear in Platts Asia-Pacific/Arab Gulf Marketscan and on Platts Global Alert page 2008 under codes BTKRA00 and BTKRB00, respectively. The monthly averages of the daily outright and differential assessments will be published in Platts Global Alert page 2441 under codes BTKRA03 and BTKRB03, respectively.

Please send any comments and questions to asia_products@spglobal.com and pricegroup@spglobal.com.

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.