Methodology

ICIS is implementing a process of rolling consultation on all of its pricing methodologies. This consultation paper is part of this formal process and covers all of the ICIS primary price points included in the butadiene weekly publications.

The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific butadiene market issues.

Click here to view the Butadiene Methodology Consultation 2017

Summary of responses

There were in total eight responses, all private.

One respondent noted that the ICIS Europe Butadiene report is neutral and accurate.

The other seven respondents addressed the question of the methodology for the US contract price assessment (Q5 on page 7 of the consultation document).

Of these, three respondents chose option (c) and four respondents chose option (d).

These are:

c) A single number representing a weighted average, based on the capacity of four producers involved in contract settlements.

AND

d) A single number representing an average of four producers involved in contract settlements.

ICIS Final Decision

After further feedback from the industry, there were in total 15 responses to the question regarding the US monthly contract price, all private.

Of these, a significant majority supported the addition to the US report of an additional contract assessment, namely option (d), a single number representing an average of the four producers involved in contract settlements.

ICIS will add this assessment to the contract table of the US report by the end of Q2 2017.

To provide further comments or feedback please contact Barbara Ortner, Head of Market Reporting: Barbara.Ortner@icis.com

Consultation on this document closed on 27 February 2017