Platts launches Asian UCO, UCOME assessments

Platts, part of S&P Global Commodity Insights, has launched assessments for Used Cooking Oil (UCO) and Used Cooking Oil Methyl Ester (UCOME) on FOB Straits and FOB China basis effective Aug. 1.

Platts has observed growing demand for Asian UCO that originates or transits in Malaysian ports Port Klang and Pasir Gudang on their way to demand centers in Europe and Singapore. In addition, UCOME originating from China is increasingly finding its way to European markets.

The new UCO FOB Straits assessment reflects ISCC-certified, non-origin specific product matching the following quality criteria: maximum 5% free fatty acids, minimum of 50 g iodine per 100 g of used cooking oil, maximum 2% M&I, maximum 40 ppm sulfur and maximum wax content of 300 ppm.

Volumes of 1,000-5,000 mt UCO are considered but normalized to 1,000 mt for cargoes loading 20 to 40 days ahead of the publication date.

The minimum loading rate will be 150 mt/hour for breakbulk cargoes. In addition, the assessment reflects product that holds proof of sustainability obtained in the framework of voluntary schemes approved by the EU Commission.

Proof of Sustainability, Annex VII and Right to Audit needs to be provided by the seller. Payment terms are defined as Cash against Docs (CAD), including ISCC certification and POS, or letter of credit at sight, at seller's option.

The new UCOME FOB China assessment reflects product meeting the EN14214 specification excluding oxidation stability, and allows for sulfur content of maximum 15 ppm, a maximum CFPP of 8 C, a maximum water content of 350 ppm with minimum GHG savings of 87%.

The assessment would also reflect RED and German mandate compliant material eligible for UK and Dutch double-counting. All material needs to be traceable and have right to audit provided by the seller.

Volumes of 2,500-10,000 mt are considered but normalized to 2,500 mt for cargoes loading 20 to 40 days ahead of the publication date. Platts will also calculate a CFR Singapore UCOME net forward using its new UCOME FOB China assessment and the Clean South Korea-Singapore 30,000 mt MR $/mt freight rate (TCADK00).

Platts is also changing its existing FOB North China UCO specifications following feedback from the market. The maximum free fatty acids has been changed from 5%-6% to 7%, the loading window has been changed from 15-30 days forward to 20-40 days forward. The standard bulk cargo size has also been changed to 2,500-10,000 mt from 3,000-10,000 mt.

Platts is also launching new calculated assessments for US dollar denominated BMD crude palm oil month 3 futures contract at 6:00 pm Singapore time and a palm oil methyl ester biodiesel spread versus the BMD CPO month 3 futures contract.

These assessments will appear in the daily Platts Biofuelscan and the Weekly Biomass-Based Diesel Report. They will also appear on Platts Biofuels Alert pages 2310, 2311 and 2312.

Platts welcomes all feedback and questions to asia_ags@spglobal.com, with a cc to 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.