Platts proposes to launch CFR India anhydrous grade bioethanol assessments Oct 6

Platts, part of S&P Global Commodity Insights, is proposing to launch two weekly anhydrous grade ethanol assessments on a CFR India basis, effective Oct. 6.

The launch of the CFR India anhydrous grade ethanol assessment would capture increasing imports of ethanol from the US, Brazil and other locations.

The launch also aligns with the increasing need for pricing transparency in the region.

The proposed assessments would reflect denatured anhydrous grade with a purity of more than 99% ethanol by volume.

The parcel size would be 3,000-5,000 mt. Other volumes may be taken into consideration, but will be normalized back to 3,000-5,000 mt. An ethanol cargo being delivered to Indian ports by ships could carry multiple parcels.

The two weekly assessments would cover different laycans. One assessment would reflect spot cargoes delivered 35-50 days forward from the date of publication, and the other would reflect delivery 50-80 days forward from the date of publication.

Platts understands that the 35-50 day forward laycan is the most liquid in the first quarter of a calendar year, while the other is more liquid for the rest of the year, on a CFR India basis.

Platts has observed that the bulk of the material that is imported into India is from the US and Brazil; however, shipment/delivery timelines vary throughout the year, tracking different liquidity periods. The two laycans are aimed at capturing the bulk of this spot trading activity.

The assessments would consider cargoes delivered to the Indian ports of Nhava Shiva and Mundra on a CFR basis. Cargoes delivered to the other Indian ports meeting the quality specifications may be taken into account, but would be normalized back to the basis location.

The proposed CFR India assessments would reflect a letter of credit of 180 days from the date of transaction. For price information with usance of less than 180 days, the value of the extra credit allowance would be normalized.

The proposed assessments would be published in $/mt.

The proposed assessments would reflect the latest information sourced from the market up to the close of the assessment window at 16:30 Singapore time on Mondays and follow the Singapore calendar.

In the absence of CFR India pricing data, Platts may look at related markets such as Platts Chicago Terminal (AALRI00) ethanol benchmark and factors such as quality premium, insurance, freight, and other costs, or other adjacent ethanol market information.

The proposed weekly assessments would be published on Platts Biofuels Alert pages 2213, in the daily Platts Biofuelscan and Weekly Ethanol report.

Platts invites feedback, comments and questions on this proposal by Sept. 5 to MRTS_biofuelsandfeedstocks@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.