Platts to update Asia PX benchmark assessments, effective Jan 2, 2024

Platts, part of S&P Global Commodity Insights, will update the methodology for Asian paraxylene (PX) CFR Taiwan/China benchmark assessments, effective Jan. 2, 2024.

On Nov. 1, Platts proposed to amend the methodology(opens in a new tab) for the assessment to reflect more closely the typical PX trade flows.

Platts has observed that the majority of PX supplies into China come from South Korea, Japan, Taiwan or Southeast Asia. The latest data from Chinese customs supported this, with more than 90% of the total PX imports so far in 2023 having arrived from these origins, with the trend of their increasing share observed over the past several years.

Following the proposal, Platts received extensive feedback from market participants demonstrating broad support to reflect the totality of the PX CFR China/Taiwan market, including material from all origins. Assessments will be normalized to standard specifications and terms, including vessel size, credit and discharge terms.

These standards are:

Size: 5,000 mt cargoes delivered on 5,000-20,000 dwt vessels.

Credit terms: Standard credit terms as per market practice for typical observable trading activity on an LC 30-45 days basis.

Discharge terms: The assessment will reflect values of deliveries with a single or double port discharge. In case of more than two discharge ports, the seller is expected to deliver the cargo as either the first or second stop.

Delivery laycans

The published delivery laycans and Marker will remain unchanged. Platts currently publishes the spot values for the second, third, fourth, fifth and sixth half-month windows forward from the date of the assessment. The Marker will continue to average the fourth, fifth and sixth half-month laycans. For example, on Jan. 2, the Marker will average H2 February, H1 March and H2 March. From Jan. 16, the Marker will average H1 March, H2 March and H1 April.

eWindow

As part of the methodology change, Platts will replace the existing eWindow instruments for Asia and open-origin PX with near-haul and long-haul PX instruments.

• Near-haul PX instrument will refer to PX delivered on an up to 20,000 dwt vessel with a single/double or first/second port of discharge.
• Long-haul PX instrument will refer to PX delivered on a larger, up to 35,000 dwt, vessels with any order of discharge. The pricing information for long-haul cargoes will be reflected in the assessment, subject to normalization.

In addition, Platts will include Jiaxing as a par delivery port to reflect its ability to accommodate vessels of the proposed standard. With effect from Jan. 2, 2024, buyers will be able to declare Jiaxing as a discharge port for trades reported during the MOC process.

Near-haul assessment

Platts will discontinue the CFR NE Asia near-haul assessments on Jan. 2, 2024. The near-haul assessments appear in Asian Petrochemicalscan, and are published on Platts Petrochemical Alert pages 214, 337, 412, 436, 542, 600 and under the following price database codes:

Description Symbol

Paraxylene CFR NEA Near-Haul Marker $/mt PXNHE00

Paraxylene CFR NEA Near-Haul Marker $/mt Mavg PXNHE03

Paraxylene CFR NEA Near-Haul Marker $/mt WAvg PXNHE04

Paraxylene CFR NEA Near-Haul Half Mo2 $/mt PXNHG00

Paraxylene CFR NEA Near-Haul Half Mo3 $/mt PXNHH00

Paraxylene CFR NEA Near-Haul Half Mo4 $/mt PXNHI00

Paraxylene CFR NEA Near-Haul Half Mo5 $/mt PXNHJ00

Paraxylene CFR NEA Near-Haul Half Mo6 $/mt PXNHK00

Platts started publishing the spot value for near-haul supplies(opens in a new tab) to provide transparency to the market on a price differential between the existing specifications and the potential new methodology for the PX benchmark on Oct. 2.

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. Platts will consider all comments received and will make comments not marked as confidential available upon request.