Trading on TRADERSbiomass?

You will see real-time, bids and offers for standard and non-standard biomass products posted by TRADERSbiomass Market Members.

You are allowed to negotiate major commercial terms such as price, volume, incoterm, type of packing, currency and payment method on posted deals by other Market Members.

When a trade is executed, a pop-up box instantly informs you which contract has traded and at what price. The TRADERSbiomass trading screen is an invaluable source of biomass pricing information.

You will first need to select other TRADERSbiomass Market Members. To trade biomass, you must approve a minimum of six counterparties.

All Market Members are required to register company profile and basic financials with which other Market Members select Counterparties that they want to trade with on the platform.

When your chosen counterparties reciprocate, you can post bids and offers and execute trades on the platform. Don’t forget – until then you can still view prices and trades.

All trades on the platform are underlied by SBTA, TRADERSbiomass’ standard biomass trading contract. SBTA defines the quality and delivery terms and conditions so you can focus on negotiating what matters most: price and volume.

Find out more about SBTA.

You can buy and sell the most comprehensive range of physical contracts for the world’s most liquid biomass markets. Find a full list here.

Quality specifications and post-delivery price adjustments are all pre-defined in SBTA and Biomass Exchange Rules. For a given delivery period, only price, volume, incoterm, type of packing, currency and payment method need to be negotiated on screen.

Bids and offers are completely anonymous on the trading screen. At the point of execution, the parties to a trade will be informed of the identity of their counterparty.

You are in control of who you can trade with. The system will only allow you to execute major economic conditions on the platform if you have already approved that counterparty on the TRADERSbiomass system. The deals posted by approved counterparties appear in green on the trading screen and are tradable.

A transaction is deemed to take place at the time of execution on the platform (either by yourself or upon instructing TRADERSbiomass to transact on your behalf), at which point you are contractually bound under the terms of SBTA and the Biomass Exchange Rules.

There is no minimum quantity set to buy.

This short animation provides a quick introduction to the biomass trading platform.

Post-transaction

Yes. Final price is determined based on quality at loadport, as per normal market practice. Price adjustment method is defined at SBTA and the Biomass Exchange Rules.

Strict rejection limits and penalties laid out to give buyers comfort on loaded quality. SBTA and the Biomass Exchange Rules contain clear contractual provisions for umpire analysis and rejection procedures.

About TRADERSbiomass

TRADERSbiomass hosts the world’s most comprehensive online platform for the sale and purchase of standard and non-standard biomass. It is also the architect of SBTA a standard biomass trading agreement which has become the biomass market’s contract of choice.

TRADERSbiomass’ online trading platform serves as an electronic marketplace where participants bid, offer and transact cargos of physical biomass.

To view prices or transact cargos on the TRADERSbiomass platform, companies must become Market Members. See how to join and the costs.

How TRADERSbiomass can help clients?

Case 1: A seller’s all production volume has been booked already –
Here in order to increase contracts, sellers need to increase production capability in turn need to set up new factory or extend existing factory that would require more funding.
As TRADERSbiomass is having M&A arm for specifically biomass with experienced M&A bankers around the globe, Our M&A team can help them to get funding for Production capacity increase, and therefore sellers can expect more contracts from the enhanced capacity.
Case 2: A seller would not be in a position to sell all the production volume to his/her existing buyers –
We as TRADERSbiomass team would need to know the reason of seller for not being able to supply all production volume to existing buyers, which can either be because of quality issue (we could not be able to help here) or not being able to find adequate number of buyers to sell to. We can help here in a big way by match making as our trading system is first and only one global biomass trading platform where n number of buyers and sellers can get together to make n number of deals.
Once a seller is onboarded to our system, s(he) would have a chance to make a deal with as many as buyers as s(he) likes in a very efficient way.
S(he) don’t have to wait for buyers visiting them one by one. This is very receptive sales activity.
A seller can be more aggressive in marketing and sales activity by joining our system, selecting right counter-parties and negotiating with the lead. You as a buyer or seller is in control of your destiny by leveraging our platform efficiently.

As replied above, it is a global trading platform, i.e. buyers and sellers can get together from all over the globe. Not only Japan or Korea but also Europe or America or other countries of the world. Market environment tends to change over the period of a year. For instance, Korean market is good for Vietnamese Sellers now, however national policy in Korea for biomass are constantly changing. There were difficult times three years back between Vietnam and Korea’s biomass trade due to certain policy changes. These policy changes can take place again anytime soon. So, it is always meaningful to diversify Trading channels to more countries and more buyers. TRADERSbiomass’s trading platform is a great solution to this risk.

On TRADERSbiomass’s trading screen, every deal (bid or offer) is posted on real-time on the INDEX.All registered Members can watch how other traders place a bid for specific deal route from Origin to Delivery points. TRADERSbiomass also provide bid and offer info through INDEX where members can watch average Bid price / Offer price and Agreed deal price for any specific location under designated duration which makes the market very transparent. All registered Members can benchmark other member’s bidding strategy, so that they would be able to avoid any situation wherein they get entered in a contract with some buyer based on average market price due to insufficient market intelligence.

In a one on one negotiation situation (under limited market intelligence) normally buyer takes pricing advantage, as seller has less bargaining power. However, when sellers would have a chance to meet and negotiate with more buyers, they can find out better deal / price with stronger bargaining power.

In a one on one negotiation situation (under limited market intelligence) normally buyer takes pricing advantage, as seller has less bargaining power. However, when sellers would have a chance to meet and negotiate with more buyers, they can find out better deal / price with stronger bargaining power.

Future trends are majorly based on current market situations, to help on this TRADERSbiomass provides “Forward” Transaction where buyers and seller can do a future deal like one year or two years ahead of the time. This will eventually give a direction to the market for future.

As we have large number of buyers and sellers globally on our platform in this specific niche commodity space (biomass), Our system becomes very useful and efficient for match-making between Capital Seekers and Capital Providers & hence it becomes easy to make such clubs for deal relations.

Case 1: Buyer and Seller uses TRADERSbiomass’s SBTA –
Settlement will take place based on SBTA flow set in our system. Like buyers and sellers can negotiate on major terms of the deal including payment methods among multiple choices.

Case 2: Users preferred payment method –
Multiple options are provided in our system to select or to add any other method.

Case 3: Escrow Service under the agent agreement with Escrow.com –
if buyer and seller would determine to use this service, the Escrow service will handle complete settlement procedure. However, please note that Users need to pay service charge in order to use this service

Seller need to guarantee about product quality, and if the product quality is not compliant with what they promised, seller need to pay penalty set out in the SBTA.

Buyer need to guarantee payment terms and timeline, and if not paid in time, buyer need to pay penalty set out in the SBTA

We only support the trading over platform, and we do not take any position to back up the trades and clearing house functions. Buyer and Seller needs to decide the payment method before the trader and settlement will proceed accordingly. Also, Escrow Service can be utilized to assure more safer transaction.

If Escrow Service is opted, it will monitor whole execution process. If not, TradersPower will check and monitor every phase of execution by referring to seller and buyer during the transaction.

Seller and buyer need to choose a type of incoterm mutually through negotiation process (list of incoterm will be provided) in the exchange. However, if buyer and seller choose to go with a different set of contract conditions, applying logic on how to use incoterm is upto them (User / Company), we do not intervene there.

  • On TRADERSbiomass, Users can do extensive negotiations for better terms more Efficiently with many counter-parties simultaneously through our electronic trading system (ETS).
  • If a user (buyer / seller) posts any deal on our ETS targeting particular markets like Japan, Korea or China, it’s counter-parties in those market gets notification via internal messaging services & mails and can review the deal as soon as its posted and jump into it early (if it attract their interest, Users don’t have to spend a lot of time for searching and shopping)
  • Users can majorly focus on negotiating terms and conditions of a particular deal with a counter-party that they have selected.
  • Before new users starts trading, s(he) needs to select counter-parties who they want to trade with by referring to other member’s corporate profile, financial snapshot, product & Production capabilities. This selection process will be made on an anonymous basis for protecting business longevity. Once a User selects all his/her counter-parties, deals posted by the selected counter-parties will be highlighted in green on the trading screen which helps, comforts and protects users transaction only with selected counterparties.
  • One of problems faced by biomass buyers is that many of biomass sellers tend to be small companies with short operational history and financial weakness. So, our counter-party selection functionality will be able to mitigate entry level risk that Users would face.
  • Through negotiation between buyer and seller, if both parties agree on final terms, the deal will be binding, and ID’s of both parties will be revealed to the each other & buyer would be given a closing condition weather he would like to visit supplier before freezing the deal & supplier cannot reject his/her visit. After an on-site visit by the buyer, if buyer would decide that supplier is not in compliance with what they have disclosed during the negotiation of the deal, the buyer may terminate the deal & do not proceed for closing the deal with him/her.

Yes, It would definitely take few years to get momentum as Korea and Japan market are still in early stages of market developments. So, our business plan is to conduct continuous marketing activities to get higher exposure to industry players. At the same time, we are trying to get sell-side mandate for fund raising deals from Biomass suppliers who want to raise fund to set up or expand their pellet plants. TRADERSPower PTE LTD has already got a sell-side mandate from a German BioCoal company for their phase 1 fund raising. That way, we could make some interim fee. Also, we may get mandates for long-term supply agreement from suppliers which would not be through ETS, however by bespoke trading services.

Finally, as of now we can support TRADERSpower’s minimum working capital & Once we get on track with good momentum, We would be inviting some well-known renewable energy companies onboard as our strategic investors.