Platts to change Asia MTBE methodology, launch new differential on Jan 2, 2025

Following market feedback, Platts, part of S&P Global Commodity Insights, will make changes to the cargo sizes reflected in its FOB Singapore MTBE assessment and launch a new MTBE differential assessment to gasoline, effective Jan. 2, 2025.

Platts originally proposed these changes in the subscriber note published on Oct. 28, following a consultation initiated on Aug. 28 ( https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082824-platts-seeks-feedback-on-asia-mtbe-coverage ).

Cargo size

Platts will start reflecting 5,000 mt cargoes in its FOB Singapore MTBE assessments, in addition to the existing 3,000 mt parcels.

As part of this change, Platts will stop reflecting 2,000 mt parcels in its MTBE assessments.

In cases where the bid and offer might cross due to volume differences, the largest volume within the published guidelines will take precedence in the assessment process. For example, a bid for 5,000 mt of MTBE on a FOB Singapore basis will take priority over an offer of 3,000 mt.

New differential to 92 RON gasoline

Platts will start publishing an FOB Singapore MTBE differential (premium or discount) to the corresponding strip of the Platts FOB Singapore 92 RON gasoline Mean of Platts Singapore (MOPS) at 4:30 pm Singapore time.

The 15-40 days forward gasoline MOPS Strip will be used as a basis to measure the value of the physical MTBE market when a floating price is used. Platts will use Balance Month and Month 1 gasoline derivatives assessments to calculate the MOPS Strip value until the 15th calendar day of the month, following which Month 1 and Month 2 derivatives assessments will be used to calculate the strip.

The new differential assessment will complement the existing outright MTBE price assessment and will reflect the cargoes with the same specifications and terms.

The MTBE differential will be expressed in $/b, based on the $/mt-$/b conversion factor of 8.45.

E-window

To inform the new differential assessment, Platts will add new instruments on the Platts Editorial Window, or eWindow, for the FOB Straits MTBE Market on Close assessment process. The new instruments will allow market participants to submit bids and offers for FOB Straits MTBE as differentials expressed in $/b over Platts FOB Singapore 92 RON gasoline MOPS Strip.

Market participants will be able to improve their bids and offers by a minimum of $0.01/b per 30 seconds and a maximum of $0.05/b per 30 seconds right up until the close of the MOC at 4:30 pm Singapore time (0830 GMT).

Following any trade, there will be 30 seconds to rebid or re-offer. A one-minute extension period will be triggered by any price move or a rebid/re-offer in the 30 seconds prior to the close of the MOC.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers in the MOC assessment process to ensure an orderly and transparent price assessment process, which can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/petrochemicals-timing-increment-guidelines.pdf

MTBE factor

Platts will continue to publish an MTBE factor, which expresses the ratio between daily MTBE assessments basis FOB Singapore and 92 RON gasoline assessments FOB Singapore. The factor calculation uses the mean of the low and high of Platts MTBE assessments and 92 RON cargo assessments, respectively.

All other aspects of the FOB Singapore MTBE assessment methodology will remain unchanged, including the loading laycan, which will remain 15-40 days forward from the date of publication.

Please send all comments, feedback and 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.