S&P Global Platts has amended its FOB NWE Seagoing Butane (PMAAL00) assessment to reflect a volume range of 4,000 mt to 6,000 mt, with a base standard of 4,000 mt, with effect from January 2, 2020.
Platts has observed that typical parcels trading in this market are above 4,000 mt, and has received feedback that the previous parcel sizes reflected in the assessment are no longer the most fungible. While smaller parcel trades have been observed, these are typically loaded on to larger vessels wherein the cost of unused freight affects the value of the trade.
The assessment previously reflected a range of full or part cargoes from 1,800 mt to 6,000 mt with no basis size. The Butane NWE CIF assessment remains unchanged, reflecting full or part cargoes of 1,000 mt to 3,600 mt.
Only trades for parcels within the 4,000 mt to 6,000 mt range will be reflected in the FOB assessment, with trades for larger sizes normalized to the basis volume of 4,000 mt for assessment purposes.
This change follows a period of industry feedback. The note announcing this decision was published December 3: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/120319-platts-to-change-volume-range-basis-for-fob-nwe-seagoing-butane-assessment
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