Following a consultation period, S&P Global Platts is proposing to update the delivery periods, quantity and nomination procedures reflected in its European CIF ARA mixed xylene and toluene assessment processes, from January 27, 2020.
Platts launched a formal consultation into these assessments October 4, 2019, in a subscriber note available here:
These proposals reflect the range of feedback received in that consultation process.
DELIVERY PERIODS: Platts is proposing to change the delivery laycans participants may bid and offer in the Market on Close assessment process. Specifically, under this proposal Platts would only publish bids and offers with balance month or calendar month delivery periods. This would better align published market information with current spot market activity as well as Platts assessments.
Platts M1 and M2 assessments would continue to reflect calendar month timing, and M1 would roll forward to the next calendar month 5 working days prior to the end of the current month.
DELIVERY NOMINATION: In addition, Platts would only publish indications under which sellers would narrow the delivery window, subject to mutual agreement with the buyer. At least five calendar days prior to the narrowed delivery window, sellers would nominate performing vessel and narrow the window to 10 days for coasters or larger vessels, and to five days for barges. For balance month trades with reduced laycans, nominations would have to be made promptly following the trade.
QUANTITY: In addition, Platts proposes to only publish bids, offers and trades in the range 2,000 to 5,000 mt. Currently Platts publishes market indications with a minimum quantity of 1,000 mt.
VESSEL TERMS: Platts proposes to only publish bids, offers and trades in which laytime and demurrage are capped at the level of a 10,000 dwt vessel.
The following symbols would be affected:
Platts invites feedback on this proposal to firstname.lastname@example.org and email@example.com by December 20, 2019.
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.