London, October 8th / PRNewswire / -- The global energy and commodities pricing agency Argus has launched new monthly price indices for the European domestic ethylene and propylene markets, aiming to bring greater transparency to these important chemical markets.
The new Argus North-West Europe Ethylene Index and Argus North-West Europe Propylene Index provide independent price references for the industry, developed after discussions between Argus and market participants. Initially, these prices can serve as reference points and assist in the negotiation of traditional monthly contract prices (MCP); at the same time, they are also designed to be used as alternatives to existing benchmarks or in combination with existing benchmarks for pricing mechanisms.
These indices are calculated using transparent and publicly available methods. Each index is based on a weighted combination of spot ethylene or propylene prices, as well as spot cracking feedstock prices; the feedstocks include naphtha, propane, and butane, all of which are assessed by Argus.
European ethylene and propylene MCP have for decades been the benchmark for long-term contract pricing. These prices are determined through independent negotiations among industry participants and have historically provided a baseline for companies to negotiate their own contract prices, including discounts relative to MCP. However, the number of participants in these negotiations has declined, highlighting the need for innovative pricing tools.
Apart from the ethylene and propylene markets, MCP also serves as an important benchmark for many downstream value chains, including polymers and other chemical products. Therefore, it ultimately affects the prices of a wide range of industrial and consumer goods.
Argus Media Chairman and CEO Adrian Binks stated: "We are delighted to collaborate closely with participants in the chemical industry market to develop a new pricing methodology. Our new index addresses the issue of declining participation in the monthly contract pricing process and provides additional transparency to resolve the growing disconnect between contract prices and the observed market value." Argus is committed to providing accurate, reliable, and independent price assessments, bringing clarity to a complex and often opaque market.
Argus Contact Information
London: Seana Lanigan, +44 20 7780 4200, Email: Seana
Houston: Liz Orr, +1 713 968 0000, Email: Liz
Singapore: Tomoko Hashimoto, +65 6496 9960, Email: Tomoko
About Argus Media
Argus is a leading independent market intelligence provider in the global energy and commodities markets. We offer key price assessments, news, analysis, consulting services, data science tools, and industry conferences to help people understand the complex and opaque commodities markets.
Argus is headquartered in London and has 32 offices in major global commodity trading centers, with over 1,500 employees. It is an independent media organization.
Companies, traders, and governments in 160 countries around the world trust Argus data for decision-making, situation analysis, risk management, transaction facilitation, and long-term planning. The Argus price is widely used globally as a credible benchmark for pricing transportation, commodities, and energy.
Argus was established in 1970 and to this day remains a privately registered company in the UK, jointly owned by employee shareholders and the globally growing equity firm General Atlantic.
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The titles of the publications ARGUS, Argus Logo, ARGUS MEDIA, ILLUMINATING THE MARKETS, and Argus as well as the names of the indices are trademarks of Argus Media Limited. For more information, please visit Trademarks.
