Platts, part of S&P Global Commodity Insights, will no longer include Russia as part of the open origin basis of its refrigerated and pressurized propane and butane assessments in Asia and the Middle East, effective immediately.
This decision follows a consultation to review the merchantability of Russian material in the Asian refrigerated and pressurized propane and butane markets by Platts opened on Feb. 28: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/022823-platts-seeks-feedback-on-russian-material-in-asian-lpg-assessments
The majority of feedback that Platts received suggested that Russian-origin material was not merchantable in the open-origin Asian LPG markets and supported its exclusion from the relevant Platts assessments. Market participants were also in agreement that observed Russian-origin LPG inflows into Asia have not been significant in 2023.
Russian-origin product has already been excluded from Platts benchmark cargo price assessments for gasoline, naphtha, gasoil, jet fuel and residual fuel oil in Asia, as well as from all refined product assessments in Europe.
Platts LPG assessments in Asia and the Middle East include:
Refrigerated LPG:
11:11 CFR North Asia (30-45 days) AASGO00
11:11 CFR North Asia (45-60 days) AASGP00
11:11 CFR North Asia (60-75 days) AASGQ00
11:11 CFR North Asia cargo AASGN00
Propane Butane:
CFR North Asia 30-45 days AAVAK00 AAVAN00
CFR North Asia 45-60 days AAVAL00 AAVAO00
CFR North Asia 60-75 days AAVAM00 AAVAP00
CFR North Asia cargo PMAAV00 PMAAF00
CFR South China cargo AABAK00 AABAU00
CFR Taiwan cargo AABAN00 AABBH00
FOB Arab Gulf cargo PMUDM00 PMUDR00
Pressurized LPG:
CFR Vietnam AAWUV00
CFR Philippines AAWUX00
FOB South China AAWVB00
FOB East China AAWUZ00
FOB Singapore AAWVD00
In a subscriber note published June 23, 2022, Platts clarified the origin standards reflected in assessments that exclude Russian-origin material. In the note, Platts stated that its assessments that exclude Russian-origin material reflect oil that is not wholly, or in part, produced, manufactured or processed in Russia, or exported from Russia. These assessments also reflect transactions where the performing vessels are not Russian-flagged/registered or Russian-owned. The subscriber note can be reviewed at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material.
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