Platts clarifies merchantability standards around Ukraine proof of sustainability for Ethanol T2 FOB Rotterdam assessment

Platts, part of S&P Global Energy, would like to clarify that its Ethanol T2 FOB Rotterdam (AAYDT00) Platts Market on Close assessment reflects merchantable material.

Due to recent feedback regarding changing buying practices across Europe, Platts considers Ukraine-origin T2 fuel ethanol not presently merchantable on the same basis as other origins that have generally accepted Proof of Sustainability (PoS) documentation.

Market feedback to Platts has highlighted that there is limited market acceptance of ethanol cargoes presented with PoS documentation indicating Ukraine as the country of origin, potentially constraining onward resale, circulation, or tradability within the European spot market.

Consequently, until further review, bids, offers and trades reported in the Platts T2 Ethanol FOB Rotterdam assessment process do not reflect Ukraine-origin.

Under the Platts Assessments Methodology Guide, Platts reflects merchantable commodities in its price assessments. Merchantability pertains to specifications, contractual terms, shipping and logistical considerations and other aspects of performance that may affect the product's fungibility in the relevant market. Market feedback to Platts has highlighted that there is limited market acceptance of ethanol cargoes presented with PoS documentation indicating Ukraine as the country of origin, potentially constraining onward resale, circulation, or tradability within the European spot market.

Platts is clarifying that bids, offers and transactions published in the Ethanol T2 FOB Rotterdam MOC are expected to be performable with product and associated documentation, including country of origin information, that are broadly fungible and readily merchantable across the deliverable market.

This clarification does not change the assessment's underlying specification. The Ethanol T2 FOB Rotterdam continues to reflect T2 product meeting European sustainability and regulatory requirements, as defined in the Platts Global Biofuels Specifications Guide.

Platts will continue to monitor market feedback regarding deliverability, documentation standards, and evolving trade practices, and may review its methodology.

For more information on the counterparty review process, please refer to MOC Participation Guidelines, available here.

Entities that wish to participate in the MOC process can contact market_integrity_review@spglobal.com.

Please send all feedback, comments and questions to platts_biofuels@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.