Platts to launch butadiene FOB China assessment Dec 1, 2022

Following market feedback, Platts, part of S&P Global Commodity Insights, will launch a daily spot butadiene assessment on FOB China basis, effective Dec. 1, 2022.

This follows Platts observation of rising exports from China over the past two years.

Platts first proposed launching the assessment in a subscriber note published on Sept. 23, 2022: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092322-platts-proposes-to-launch-butadiene-fob-china-assessment-dec-1-2022.

The new daily assessment will be based on the latest information sourced from the market up to the close of the assessment process at 4:30 pm Singapore time (0830 GMT). The assessment will be published in $/mt and will follow the Singapore publishing schedule.

The new assessment will reflect the product with the following parameters:

Volume: 2,000-3,000 mt size cargoes

Quality: Minimum purity of 99.5%. Dimer content maximum 1,000 ppm.

Timing: Loading 20-40 days forward from the date of publication

Location basis: FOB China, basis Ningbo, Zhoushan, Zhenhai, Shanghai ports. Platts may also take into consideration pricing information from northern China's Tianjin, Panjin and Dalian ports, as well as southern China's Zhanjiang but will normalize them to East China ports for the assessment.

Payment terms: Letter of credit up to 30 days. For deals with the usance of greater than 30 days, the value of the extra credit allowance may be factored out for the assessment.

Pricing information for material with other specifications and terms may be normalized to the standard for assessment.

The new assessment will be published alongside Platts' existing butadiene assessments in the Olefinscan as well as on the Platts real-time petrochemical service, Platts Market Center, and Platts Dimensions Pro.

Please direct any questions or comments to petchems@spglobal.com with a copy to pricegroup@spglobal.com.

For written comments, please provide a clear indication if they 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.