SUBSCRIBER NOTE: Platts to expand European ethanol basis to FOB ARA from FOB Rotterdam

Following market feedback, S&P Global Platts has decided to amend the basis of its T1 and T2 FOB Rotterdam ethanol assessments to reflect FOB Amsterdam-Rotterdam-Antwerp bids, offers and transactions from May 1, 2018.

Platts will not amend the nomenclature of its published T1 and T2 FOB Rotterdam ethanol assessments and will continue to reference these assessments in all publications under the name of "T1 and T2 Ethanol FOB Rotterdam."

For FOB ARA, buyers and sellers will proceed to nominate loading from one of the locations in Amsterdam, Rotterdam or Antwerp that are already approved for the Platts Market on Close assessment process. The seller will not incur additional freight costs for loading from ARA loading points, compared with loading from Rotterdam, provided that costs do not exceed standard market rates.

Under this revised approach, from May 1, Platts will only publish bids, offers and transactions reflecting FOB ARA.

This change in methodology reflects the fact that activity in the broader ARA trading hub has been increasing in recent years, further underpinning the liquidity of the physical assessment.

Please send any feedback or questions to europe_ags@spglobal.com and pricemethodology@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 to the public upon request.