S&P Global Platts will launch a daily East China basis Chinese yuan (CNY) conversion of the first published laycan of the CFR Taiwan/China paraxylene (PX) assessment on Friday, November 1, 2019.
The move was in anticipation of changes in spot trading activity upon the start-up of several Chinese PX plants.
The addition of yuan-denominated PX will enhance the usability of Platts assessments in the domestic Chinese market.
The conversion will be calculated on a daily basis using a USD/CNY rate (symbol AAWFW00) published daily on working days in Singapore, sourced from the Bank of China, and will also consider prevailing import duty and value added tax.
For example, on November 1, East China converted price would reflect the assessed dollar per metric ton price of the first published laycan (H2 November) in the CFR Taiwan/China assessment, multiplied by the USD/CNY rate (AAWFW00), and the prevailing import duty and VAT.
Platts publishes five laycans in the Asian Paraxylene CFR Taiwan/China assessment in USD/mt, with the marker (symbol AAQNE00) representing the average of the third, fourth and fifth published laycans.
Platts will continue to monitor the market for developments and welcomes any feedback around standard trading and operational procedure for domestic Yuan denominated paraxylene spot trades going forward.
Platts first proposed this in a subscriber note dated August 29, available at http://plts.co/xmnc30pCdBT
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