Platts proposes to update Asian UCOME assessment specifications

Platts, part of S&P Global Commodity Insights, proposes to update some of the terms and specifications reflected in its assessments of UCOME FOB China and CFR Singapore with effect from Nov. 29, 2022.

Platts has received feedback from market participants that the Cold Filter Plugging Point specification reflected in its FOB China UCOME assessment is too high, and might mean the assessment reflects material unsuitable for international trade. Therefore, Platts proposes to update its FOB China UCOME CFPP specification from maximum 8 degrees Celsius to maximum 5 degrees Celsius.

Separately, Platts has observed an increase in transparent market information for UCOME parcels loading in and around Singapore and Malaysia. To better reflect this data, Platts proposes to amend the basis reflected in its Singapore UCOME assessment from CFR Singapore to FOB Straits, amend its methodology from a calculation to a market assessment, and to rename it as FOB Straits UCOME. Previously, the assessment was calculated as a net forward from the FOB China UCOME assessment based on the Clean South Korea-Singapore 30,000 mt MR $/mt freight rate.

As a result of this change, the assessment will reflect parcels loading in Straits ports as defined in Platts specifications guides, including Pasir Gudang. Loadings from Port Klang may also be reflected in the assessment, but may be normalized for assessment purposes. The assessment will continue to reflect the same quality, volume and timing specifications as the FOB China UCOME assessment. In the absence of direct market liquidity, the assessment may reflect related market information, including movements in the FOB China UCOME price and freight rates.

Platts first launched the FOB China UCOME assessment on Jan 18, 2021. https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/011821-platts-launches-fob-singapore-hvo-saf-north-asia-uco-prices-jan-18

Platts first launched the Singapore UCOME assessment on Aug 1, 2022. https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080122-platts-launches-asian-uco-ucome-assessments

Please send any comments, feedback or questions by Oct. 25, 2022, to asia_ags@spglobal.com and pricegroup@spglobal.com.

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