Platts updates Asian PX assessment specifications

Platts, part of S&P Global Commodity Insights, has updated the methodology for its Asian paraxylene CFR Taiwan/China assessment to specify sailing times and credit terms, effective March 11.

On March 4, Platts announced the decision to implement changes for the benchmark assessment.

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030424-platts-to-update-asian-px-assessment-specifications-march-11

Platts has decided to update the benchmark on the back of extensive feedback received from market participants, demonstrating broad support for aligning credit terms as well as including sailing times for near-haul cargoes delivered into the five ports reflected in the existing methodology.

Credit terms

Credit terms are typically bilaterally agreed upon and accepted by both counterparties.

Platts assessment reflects 30-day credit terms for near-haul PX, in line with standard market practice for typical observable trading activity.

Market information with non-standard terms may be considered for the assessment and may be subject to normalization to the standard terms.

Sailing times

Platts will specify sailing times commensurate with the definition of the near-haul cargoes and the proposed credit terms, as the voyage time for PX cargoes is deemed an important trading criteria for buyers and sellers.

Platts expects a typical sailing time of up to 10 days for cargoes delivered against a near-haul trade published in the Platts Market on Close assessment process.

There will continue to be no sailing time guidance for long-haul cargoes.

The sailing time refers to the typical laden voyage time taken from the load port to the discharge port, based on distance in nautical miles.

Company general terms and conditions are normally recognized, provided they are consistently applied and accepted as part of normal trading practice.

Counterparties are expected to perform on trades reported in the MOC based on typical GT&Cs that have been applied and accepted by both counterparties in the open market.

For more details about the Platts approach, please refer to the Platts assessment methodology guide.

Please send all comments, feedback and questions to petchems@spglobal.com and 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 those not marked as confidential available upon request.