SUBSCRIBER NOTE: Platts clarifies origin statements in Asia methanol assessments

Following extensive discussions and feedback from market participants, S&P Global Platts wishes to clarify that it will no longer publish statements regarding origin requirements for Iranian methanol during its Market on Close assessment process.

Platts typically reflects open-origin products in its price assessments processes, and bids and offers published during the MOC process are considered to be open-origin unless stated otherwise. While certain market participants clearly may not trade Iranian-origin methanol because of relevant and applicable sanctions restrictions, Platts observes that Iranian methanol forms a part of the broad supply flow and trade in Asia's markets, and that established trade relationships are broadly in place to account for the impact of sanctions on trade.

Platts has clear guidelines in its published methodologies regarding commodities where certain sanctions may be applicable for certain participants active in the spot markets. A seller may not assume that a buyer has the obligation to buy embargoed materials, as laws stating that nationals or companies subject to sanctions legislation from specific countries may not be permitted to lawfully buy products originating from embargoed countries or, in some cases certain suppliers or individuals. A seller therefore may not assume that a buyer has the obligation to buy embargoed materials. A buyer is not expected to unreasonably reject an Iranian origin cargo nominated by a seller, if sanctions are not demonstrably applicable.

Platts assessments aim to reflect the market value of merchantable material in all instances. Platts accepts that individual companies may have trading limits with counterparties and that national legislation may prevent companies from dealing in materials of certain origins. Such counterparty issues are dealt with on a case-by-case basis. Please send all comments or questions to petchems@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 to the public upon request.