Platts proposes to update UCO assessment specifications and MOC increments

Platts, part of S&P Global Commodity Insights, proposes to update some of the terms and specifications reflected in its assessments of UCO FOB Straits with effect from Jan. 26, 2023.

Platts has received feedback from market participants that the volume specification reflected in its UCO FOB Straits assessment is too low and doesn't reflect standard trading volume. Therefore, Platts proposes to update its UCO FOB Straits (UCFCC00) volume specification from "1,000-5,000 mt, normalized to 1,000 mt" to "3,000-5,000 mt, normalized to 3,000 mt."

Platts also received feedback that the standard quality specifications for China UCO have evolved to a maximum moisture and impurities at 2%, with no variation for summer specifications. Therefore, Platts proposes to update part of its UCO North Asia (AUCOC00) product purity specification from a maximum of 2% MIU (or a maximum of 3% from May 16 to August 15 to reflect summer spec) to a maximum of 2% MIU.

Platts would also like to clarify that its UCO assessments FOB North Asia and FOB Straits reflect ISCC-certified and RED-compliant material.

Separately, Platts also received widespread feedback on its Timing and Increment for UCO and UCOME to raise the Increment from a maximum of $1.00/mt per minute to a minimum of $1.00/mt and a maximum of $5.00/mt per minute, and proposes to update the increment accordingly.

Platts first communicated its MOC guidelines for Asia UCO and UCOME assessments on Sep 13, 2022, available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/091322-s-p-global-commodity-insights-updates-moc-guidelines-for-asia-uco-and-ucome-assessments

Platts will continue to review these specifications as the market continues to evolve, including during its annual review of the Global Biofuels methodology guide.

Please send any comments, feedback or questions to asia_ags@spglobal.com and pricegroup@spglobal.com by Jan. 12, 2023. 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.