Platts changes UCO CIF ARA assessment specifications

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

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

This change follows a decision published to the market on Sept. 4, and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/090423-platts-will-change-uco-cif-ara-assessment-specifications

The specifications for Platts European used cooking oil 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 reflects UCO basis FOB Amsterdam-Rotterdam-Antwerp, T2 product (duty paid for European-qualified material free from origin restrictions).

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

The assessment is on a 1,000-2,000 mt basis.

Other volumes may be normalized.

The assessment reflects 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 reflects 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 has updated the name of the assessment from UCO (RED) CIF ARA Outright $/mt to UCO FOB ARA $/mt.

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