NEW YORK, Nov. 13, 2017 /PRNewswire/ -- S&P Global
Platts, the leading independent provider of information and
benchmark prices for the commodities and energy markets, today
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.
Ian Dudden, Global Content
Director, Agriculture, S&P Global Platts said: "The
North-Northeast of Brazil is a
region that is net short ethanol and therefore needs to import from
the Center-South region of the country as well as from the United States. Following consultation with
market participants, we have seen strong interest in our new NNE
Brazil weekly ethanol price assessment, which provides increased
transparency, is underscored by a robust methodology, and reflects
trade volumes in this key part of the market. It builds out our
Brazilian coverage and complements our global ethanol
benchmarks.
"So far this year our ethanol analysis shows falling production
in the NNE region, with imports having more than doubled to over a
third of consumption, compared to just 15% in 2016. We expect this
trend to continue into 2018 amid the lower production expectations
for the 2017-18 NNE sugar cane crop. Overall ethanol production in
Brazil is expected to remain
stagnant due in large part to older cane in the fields and lower
crushing volumes offsetting an anticipated increase in the ethanol
mix. We expect Brazil will remain
a net importer of ethanol for a second consecutive year," Dudden
concluded.
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.
Contact
Americas: Kathleen
Tanzy, + 1 917 331 4607, kathleen.tanzy@spglobal.com
About S&P Global Platts
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more information, visit www.platts.com
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SOURCE S&P Global Platts