Platts updates Asia UCO assessment specifications and MOC guidelines

Platts, part of S&P Global Commodity Insights, has updated some of the terms and specifications reflected in its assessment of UCO FOB Straits and FOB China with effect from Jan. 26, 2023.

Platts updated the volume specification to "2,500-5,000 mt, normalized to 2,500 mt," and updated part of its UCO North Asia (AUCOC00) product purity specification from "a maximum of 2% MIU (or a maximum of 3% from May 16 to Aug. 15 to reflect summer spec)" to "a maximum of 2% MIU". In addition, Platts has updated the specifications to reflect wax content of maximum 300 ppm.

Furthermore, Platts will reflect cargoes loading from main ports located in East China region in its China UCO (AUCOC00) assessment.

Platts would also like to clarify that its UCO assessments FOB North Asia and FOB Straits reflect ISCC-certified and RED-compliant material. Additionally, Platts would like to clarify that the FOB Straits UCO assessment includes Pasir Gudang and Singapore terminals. Loadings from Port Klang may also be reflected in the assessment but may be normalized for assessment purposes.

Separately, Platts has updated its MOC Timing and Increments Guidelines for UCO and UCOME to "a minimum of $1.00/mt and a maximum of $5.00/mt per minute," from "a maximum of $1.00/mt per minute," and amended the payment terms for its UCO FOB Straits assessment (UCFCC00) from "Cash against Docs (CAD), including ISCC certification and POS, or letter of credit at sight, at sellers' option" to "standard payment terms."

Platts expects nomination standards for trades reported in the FOB Straits and China UCO MOC to reflect standard market terms, as agreed between counterparties.

Platts decided to update its Asia UCO assessment specifications and MOC guidelines on Jan. 12, available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/011223-platts-to-update-uco-assessment-specifications-and-moc-guidelines

Platts first proposed the update for its Asia UCO assessments on Nov. 29, available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112922-platts-proposes-to-update-uco-assessment-specifications-and-moc-increments

Platts first communicated its MOC guidelines for Asia UCO and UCOME assessments on Sept. 13, available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/091322-s-p-global-commodity-insights-updates-moc-guidelines-for-asia-uco-and-ucome-assessments

Platts will continue to review these specifications as the market continues to evolve, including during its annual review of the Global Biofuels methodology guide.

Please send any comments, feedback or questions to asia_ags@spglobal.com and pricegroup@spglobal.com. 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.