Platts launches daily Asia bitumen assessments from November 1

S&P Global Platts has started publishing 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.

Platts first announced plans to launch these assessments on Oct. 11. (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/101121-platts-to-launch-daily-asia-bitumen-assessments-from-november-1)

The new assessments reflect two grades of bitumen basis FOB Singapore and FOB South Korea.

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

Both assessments are 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 represents the premium or discount over the 15-30 day forward MOPS Strip value assessed using 380CST HSFO swaps. Details of the MOPS Strip assessment methodology is available in the Asia Pacific and Middle East Refined Oil Products methodology guide. (https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/oil)

Market participants can 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 at the time of submitting bids and offers for publication. Platts publishes 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 reflects bulk PEN 60-70 grade bitumen. The assessment reflects FOB Straits cargoes loading from refineries and storage terminals in the Singapore Strait capable of handling bitumen. Platts understand that these currently include SRC and ExxonMobil refineries on Jurong Island, Shell refinery on Bukom Island and Puma Energy's Langsat bitumen terminal. Platts will publish bids or interest to buy from participants basis FOB Straits only if they're willing to accept loading from any of the above-listed facilities. Platts will publish offers or interest to sell basis FOB Straits from participants if they're willing to deliver product only from one of the above-listed facilities. Sellers can't unilaterally nominate a port other than those listed above following conclusion of a trade basis FOB Straits. In addition, Platts may publish bids, offers and trades from other ports in Malaysia and Indonesia and normalize them basis FOB Straits. Companies submitting their bids or offers for any loading port other than those listed above must specify it at the time of submitting their orders to Platts for publication.

FOB Singapore daily outright and differential assessments 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 are published in Platts Global Alert page 2511 under codes BTSGA03 and BTSGB03, respectively.

FOB South Korea assessment: The FOB South Korea assessment reflects bulk PEN 60-80 grade bitumen. The FOB South Korea assessment reflects cargoes loadings from the ports of Yeosu, Ulsan/Busan, Daesan and Onsan. Platts would consider publication of bids, offers and trades from other South Korean ports and 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 appears 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 are published in Platts Global Alert page 2441 under codes BTKRA03 and BTKRB03, respectively.

More details on the Platts bitumen assessments are available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/oil/bitumen-assessments-faq

Full quality specification reflected by the Platts assessments are listed in the following table:

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.