Platts to start FOB, domestic China AA assessments

Following collection and analysis of customer feedback, Platts from January 6, 2011, will start weekly acetic acid assessments for the domestic East China and FOB China markets.

The domestic market assessments for cargoes between 200 mt and 500 mt will be on an ex-tank basis.

Under quality specifications, prices will be assessed for acetic acid with a minimum purity of 99%.

The domestic price will be assessed on an at sight basis with cash payment.

For deals with non-standard usance, the value of the extra credit allowance will be factored out of price assessments, based on prevailing interest rates calculated using the three-month London Interbank Offered Rate or LIBOR plus 1.5%.

The FOB China assessments will include the ports of Jiangyin and Zhangjiagang, for cargoes of 1,000-2,000 mt to be loaded up to 30 days from date of publication. Under quality specifications, prices will be assessed for acetic acid with a minimum purity of 99%.

FOB China will be assessed with credit for up to 30 days. For deals with non-standard usance, the value of the extra credit allowance will be factored out for price assessment, based on prevailing interest rates calculated using the three-month LIBOR plus 1.5%.

For questions or comments, please email Chua Sok Peng at sok_peng_chua@platts.com and copy Anton Ferkov at anton_ferkov@platts.com.