In New York state, S&P Global Platts announced that it has launched a new North-Northeast Brazil anhydrous ethanol assessment. The new assessment reflects demand for greater transparency and a clearly defined methodology to help market participants understand the drivers of pricing.
The NNE assessment will reflect anhydrous ethanol standard ANP quality in Suape, one to 15 days forward from date of publication. S&P Global Platts will calculate the assessment basis delivered at place (DAP) Suape, Pernambuco. Other locations and Incoterms such as free on board (FOB)/cost, insurance and freight (CIF) may be considered but will be normalized back to the basis location. Platts will take into consideration product produced regionally, transfers from the Center-South region and volumes delivered from international locations.
The minimum volume assessed will be 250,000 liters, or 250 cubic meters, and the maximum volume assessed 1,000,000 liters, or 1,000 cubic meters. Other volumes may also be considered but in relation to the assessed volume range. Platts would consider standard payment terms such as payment within 10 days of “delivery.” The assessments will be time-stamped to a 4:30 pm local time (Sao Paulo) Friday as a weekly assessment.
