Platts proposes to change the UCO CIF ARA assessment specifications

Platts, part of S&P Global Commodity Insights, proposes to change the used cooking oil Amsterdam-Rotterdam-Antwerp assessment quality, incoterm, and volume specifications, effective Oct. 2.

Platts proposes to reflect barges of used cooking oil (UCO) on a FOB Amsterdam-Rotterdam-Antwerp basis, taking into account imports from Asia as well as regional production.

The current Platts European used cooking oil CIF ARA assessment specifications can be found on page 11 of the Biofuels methodology and specifications: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_biofuels.pdf

Platts proposes to reflect UCO basis FOB Amsterdam-Rotterdam-Antwerp, duty paid for European-qualified material free from origin restrictions.

The assessment would reflect barges loading 15-30 days forward from the date of publication.

The assessment would be basis 1,000-2,000 mt, with other volumes normalized.

The assessment would reflect product purity specifications of material with a maximum of 5% FFA, maximum of 2% MIU, maximum of 50ppm sulfur, and a minimum of 70gr of iodine per 100gr of used cooking oil.

The Platts UCO assessment would reflect renewable energy directive compliant UCO that holds proof of sustainability obtained in the framework of voluntary schemes approved by the EU Commission. Market participants shall exercise reasonable efforts to provide all necessary documentation for Proof of Sustainability documentation.

The updated assessment methodology aims to reflect the most traded and liquid specifications of product in the European market.

Platts may normalize bids, offers and trades heard in the market to meet the assessment specifications.

Normalization brings the value of non-standard market information in line with the Platts assessed specifications.

As a result of the changes, Platts would update the name of the assessment from UCO (RED) CIF ARA Outright $/mt to UCO FOB ARA $/mt.

Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by Aug. 25.

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.