ICIS pricing Methodology

Top of page

ICIS pricing price quotations are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors. Confirmed deals, verified by both buyer and seller, are sought to provide the foundation of price assessments in the weekly reports. Price assessments may include confirmed, reported, or rumoured deals heard in the market. Formal price assessments are intended as a reference only. While every effort is made to present an accurate assessment of prices, ICIS pricing cannot accept responsibility for any decisions made on the basis of reports.

ICIS pricing reserves the right to exclude deals from assessments if they are negotiated in unusual circumstances, if specific conditions are thought to apply or if they are seen by the broader market as unrepresentative. If a deal is excluded from the formal market pricing assessment it will be reported within the text.

The text may refer to confirmed deals, which are verified by both buyer and seller; reported deals that are discussed with either buyer or seller but not confirmed by the other party; and rumoured deals as discussed with third parties, but not confirmed by either buyer or seller.

Information is gathered, primarily by telephone, email or instant messenger platforms, by a team of market editors mainly located in the ICIS pricing regional offices in London, Houston, Singapore and Shanghai. Each editor is responsible for a dedicated product portfolio for their region. This involves close liaison with colleagues to gather information from upstream and downstream markets and with their counterparts in overseas offices to develop an informed and informative editorial team. ICIS pricing appreciates the need to build trust and confidence between its editorial staff and the market. Accordingly, appropriate training is given and shifts in editorial responsibility minimised, where possible.

Periods referred to in contract price quotations are either months (noted by standard abbreviations) or quarters of the calendar year.

Q1 January February March

Q2 April May June

Q3 July August September

Q4 October November December

Spot prices are quoted for sales of fixed volumes for delivery in a single shipment at a specified time, normally within four weeks from the date of publication. The quotes cover prices agreed in negotiations between buyers and sellers in the week leading up to the date of publication. Prices are generally quoted in a range, which is meant to encompass all of the prices agreed between buyers and sellers and confirmed to ICIS pricing. Certain prices may be excluded from the range if they have been negotiated in unusual circumstances or if special conditions are thought to apply. In the absence of confirmed business, quoted spot prices may reflect discussion levels or the current levels of bids and offers. Assessments are made on an assigned basis – CFR from CFR business, FOB from FOB business. Price adjustments on the basis of netback assessments (e.g. FOB = CFR-freight) are avoided where possible.

Domestic prices are for regular long-term business between producers and consumers on a gross basis, and do not take account of any discounts or rebates which may be applied between individual supliers and customers.

List prices are released by manufacturers as suggested selling prices. In many cases, these prices are reduced after negotiations with buyers.

Price Changes
The change in prices from the previous period is indicated in blue as an increase (+), in red as a decrease (-) or no change (n/c). Changes for prices at the low end of each range are shown at the left and changes for prices at the high end of each range are shown at the right. Changes in weekly spot prices represent the changes from the previous week and changes in monthly or quarterly contract prices represent the change from the previous month or quarter.

Report Name
Some reports cover a range of products. Trade in product of inferior quality (off-spec) is taken into consideration when it affects the market for material that meets standard specifications. Reference to off-spec/distressed cargo is at the discretion of the editor.

Feedstock Prices
Contract prices for certain feedstocks are shown where appropriate. In all cases where feedstock prices are shown, they have been taken from the current ICIS pricing report for the product.

Date
ICIS pricing reports are written on the day of publication. The only exceptions are when a public holiday impacts the market. In some circumstances reports will be compiled one or a maximum two days early. When this occurs, it is clearly marked on the report. ICIS pricing provides daily and weekly pricing reports. Deadlines (unless otherwise specified in the methodology) are 1700 hours local time in London, Singapore, Shanghai and Houston. Market close prices refer to this deadline, unless specified otherwise. The date of publication is not altered in the event of public holidays. All weekly reports are published at least 50 times per year. Certain reports are not published during a two-week period in late December/early January. Daily reports are published five times per week, but may not appear on certain days due to public holidays. Please refer to the ICIS pricing publishing schedule for more detailed information.

Geographical Regions
ICIS pricing normally covers products on a regional basis to ensure the main drivers impacting the market in any given area are adequately covered. Reports are currently issued covering Europe, the Middle East, Asia or Asia-Pacific, China, India, West Asia, the United States or North America and Latin America.

Once the adjustment has taken place it is prominently mentioned in the price report it applies to. ICIS also adds a note to the online Price History to explain the apparent step-change in prices. It is important to note that price change deltas remain unaffected by any adjustment and the price trend remains accurate.

Top of page