Platts will change UCO CIF ARA assessment specifications

Platts, part of S&P Global Commodity Insights, will change its used cooking oil (UCO) Amsterdam-Rotterdam-Antwerp assessment quality, incoterm, and volume specifications, effective Oct. 2.

Platts will change the assessment to reflect barges of UCO on an FOB Amsterdam-Rotterdam-Antwerp basis, taking into account imports from Asia as well as regional production.

This decision follows a proposal published to the market on Aug. 7, and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080723-platts-proposes-to-change-the-uco-cif-ara-assessment-specifications

The existing specifications for Platts European used cooking oil CIF ARA assessment (AUCOA00) 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

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

From Oct. 2, Platts will reflect UCO basis FOB Amsterdam-Rotterdam-Antwerp, T2 product (duty paid for European-qualified material free from origin restrictions).

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

The assessment will be on 1,000-2,000 mt basis. Other volumes may be normalized.

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

The Platts UCO assessment will 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.

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 will 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 decision 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.