Will provide local buyers clearer idea of the value of the products they seek.
Bunker fuel sales are bound to rise, and with it, the need for a strong domestic pricing benchmark.
Platts, the leading energy information company, today announced the launch of daily spot market assessments for the Mumbai bunker fuel market, the first assessments of their kind by any price reporting agency. The assessments are available starting July 1, 2010.
The new Platts assessments reflect the price of 180 centistoke bunker fuel, 380 centistoke bunker fuel, and marine gasoil delivered at both the Mumbai and Jawaharlal Nehru Port Trust (JNPT) ports on the west coast of India.
"We have had increasing calls from India to help evolve price benchmarks for key oil products in the local market, so that local buyers can get a clearer idea of the value of the products they seek," said Vandana Hari, Asia editorial director for Platts.
About 2,000 vessels call at the two assessed ports in Mumbai annually, and they collectively account for around 180,000 metric tons (mt) of bunker fuel sales per year. India's total bonded bunker sales volume is currently estimated at 1.2 million mt per year.
"With the country's major ports projected to see a strong growth in traffic in the coming years – an increase of nearly 40% estimated in the cargo tonnage handled annually in the next five years – bunker fuel sales are bound to rise, and with it, the need for a strong domestic pricing benchmark," said Sharmilpal Kaur, Platts’ managing editor for the Asia oil products markets.
The Mumbai bunker assessments reflect bids, offers and trades for cargoes delivered at the Mumbai and JNPT ports between three to seven days from the date of publication. The typical trading lot size ranges from 300 mt to 2,500 mt.
“The Mumbai bunker fuel assessments are the latest in our growing suite of products especially tailored for the Indian market," said Hari. On June 1, 2009, Platts launched its MOPWIN price assessments, which are FOB West India netback assessments for refined products and derived from values in the benchmark Asian trading hub of Singapore. On January 8, 2010, it introduced LNG daily price assessments on a delivered ex-ship or DES West India basis.
These Mumbai bunker assessments are published in Platts Bunkerwire, in the bunker fuel add-on pages of Platts Global Alert, and in the Platts price database. For more information, visit the Platts website at www.platts.com.
About Platts:
Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.
