Baltpool introduces the option of long-term indexed transactions
In order to encourage the conclusion of long-term biomass purchase and sale transactions in advance and to help ensure that market participants buy and sell biomass in accordance with the price trends emerging in the market at the time of supply, the energy resource operator Baltpool has adopted changes to the Conditions of Trade in Biomass Products (hereinafter referred to as the Conditions of Trade), by which biomass exchange participants are offered to enter into Indexed biomass price transactions (hereinafter referred to as the Indexed Transaction) according to the Conditions of Trade indicated below:
- Indexed Transactions may be made on wood chip products, i.e. SM1, SM1W, SM2, SM3D and SM3;
- Indexed Transactions can be concluded for Q1 and Q4 quarterly delivery periods and WIN semi-annual delivery periods;
- According to the Indexed Transactions, up to 40 percent of the quantity of biomass products purchased and actually delivered during the previous calendar year can be purchased to a specific trading site based on the transactions concluded on the biomass exchange.
The price of the Indexed Transaction is determined in the usual manner and:
- Applies to the amount of biomass actually delivered during the first 4 delivery weeks of the transaction delivery period;
- It is later indexed according to the following formula: IK=SK*∆I/I.
IP – Indexed Price, rounded to the nearest one hundredth of a euro;
TP – Transaction Price;
∆I – The arithmetic average of the BWCS LT indices of the transaction delivery week and the three preceding delivery weeks;
I – The arithmetic average of the BWCS LT indices of the first 4 delivery weeks of the transaction delivery period.
We invite buyers who wish to take advantage of this non-standard trade condition to inform the Operator thereof by e-mail or telephone.
International Biomass Exchange Operator
Tel. No. +370 5 239 3163
E-mail: [email protected]
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