Platts proposes changes to Asia PX assessment specifications

Platts, part of S&P Global Commodity Insights, proposes to update the methodology for its Asia paraxylene (PX) CFR Taiwan/China assessment effective March 1, 2024.

The proposed changes aim to align with market feedback regarding standard market practice for credit terms and sailing times for near-haul cargoes delivered into the five ports reflected in the existing methodology.

Credit terms:

Platts proposes to update credit terms for near-haul PX to 30 days, 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 time:

Additionally, Platts proposes to specify sailing time commensurate with the definition of the near-haul cargoes and the proposed credit terms, as the voyage time for PX cargoes is deemed as an important trading criteria for buyers and sellers. Under this proposal, Platts expects a typical sailing time of up to 10 days for cargoes delivered against a near-haul trade published in the Platts MOC assessment process. There would continue to be no sailing time restriction for long-haul cargoes. The sailing time refers to the typical time taken from the loading port to the discharge port.

Companies general terms and conditions (GT&Cs) 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 Platts' approach, please refer to the Platts assessment methodology guide. https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf.

Please send all comments, feedback, and questions to petchems@spglobal.com and pricegroup@spglobal.com by Feb. 20.

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.