SUBSCRIBER NOTE: Platts extends consultation on US-origin PX in China assessments

Following a review with market participants, S&P Global Platts will extend the soliciting of feedback and comment on how market practices are developing around the potential delivery of US-origin paraxylene into the delivered China market to December 14, 2018.

Comments on this consultation will inform potential further updates to Platts paraxylene assessments in Asia, including the benchmark paraxylene CFR Taiwan/China marker.

Specifically, Platts requests comments on market practices in the the following areas:

1) How often is US-origin paraxylene currently nominated by sellers to buyers for spot trades and to fulfill term contracts in the CFR China market?

2) How are these new tariff costs currently agreed between counterparts when US-origin paraxylene is nominated by a seller for CFR China transaction?

3) What, if any, restrictions are in place on current spot contracts and current term contracts between buyers and sellers regarding the potential nomination of US-origin paraxylene?

4) Are any new restrictions being introduced for 2019 term contracts?

BACKGROUND: China imposed a special tariff of 10% on US paraxylene imports on September 24, 2018. According to trade data reviewed by Platts, imports of paraxylene to China from the US in 2017 accounted for approximately 2% of the total volume delivered. Platts paraxylene assessments currently reflect the potential delivery of on-spec paraxylene from any country of origin, including the US. While US imports are rare in China, Platts has observed that statements around the exclusion of US-origin material have become increasingly common in the Platts Market on Close assessment process. All bids and offers provided to Platts for publication have contained statements around non-US material since October 19.

Please direct any feedback to petchems@spglobal.com with a copy to pricegroup@spglobal.com by December 14.

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 those not marked confidential available on request.