Platts changes the laycan and cargo size approach for CFR India toluene assessment, Dec. 13

Platts, part of S&P Global Commodity Insights, has changed the CFR India toluene assessment laycan to reflect cargoes delivered 40-60 days forward from the day of the assessment, effective Dec. 13, 2023. Additionally, Platts will normalize larger and smaller cargoes to the 2,000 mt standard.

The changes are in response to a shift in trading dynamics that Platts has observed in the Indian toluene market.

Platts first proposed these changes in a subscriber note published Oct. 30. https://plattsconnect.spglobal.com/web/client?auth=inherit#platts/newsArticle?articleID=c1ad1306-60c0-4712-8355-9793c3dab132

The decision to implement the proposed launch was communicated in a subscriber note published Nov. 2: https://plattsconnect.spglobal.com/web/index1.html#platts/insightsArticle?articleID=05c7a4cb-4f00-4de2-a39e-4ae7c34e3972

Under the current methodology the assessment reflects deliveries in 2,000 mt clips during the third half laycan.

DELIVERY LAYCAN

Platts understands that CFR India toluene market typically specifies the shipment/loading date during the month following the day of trade.

Platts has observed that the bulk of the material is imported into India from Thailand, South Korea, Taiwan, Philippines, and China, with voyage times ranging from 15 to 30 days from the date of shipment. The change is aimed at capturing the bulk of this spot trading activity.

For example, on Oct. 4, prevailing trade would be observed for first-half November shipment, with the estimated delivery time within December, depending on the origin.

CARGO SIZE

Platts will also consider traded volumes lower than 2,000 mt or higher than 2,000 mt and normalize it to the standard. For example, a 1,000 mt or a 3,000 mt trade will be normalized to the specification of 2,000 mt for the assessment purpose based on market feedback.

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

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