Background
ICIS is implementing a process of rolling consultation on all of its pricing methodologies. Consultation paper GMC14/19 is part of this formal process and covers all of the ICIS primary price points included in the ethylene glycol weekly publications.Ethylene-Glycol-Methodology-Consultation-2019
Summary of responses
ICIS received 3 responses and this summary takes into account all of them.
Regarding the inclusion of both fibre and technical grade in the Europe MEG spot assessment, one respondent wanted this split into two assessments; another respondent wanted it to be for fibre grade only.
One respondent wanted the addition of a Med spot quote.
Another respondent wanted the current spot assessments replaced with a pan-European assessment including northwest and southern Europe. The same respondent wanted details of volumes traded each week.
On the Europe contract price assessment, one respondent wanted the assessment completed by week 3 of the relevant month – ie the August contract should be published by the third week of August, even if there is only one settlement.
On DEG, one respondent wanted the current spot CIF assessment to be reconsidered, given the current lack of liquidity.
In general, one respondent asked that, in the absence of deals, the assessments should be left unchanged, rather than moved in relation to other factors, bids, offers, other regions.
ICIS Decision
ICIS will continue to assess the Europe spot FD NWE market in a single assessment combining both fibre and technical grade. The top end of the range is formed by fibre spot deals, and the bottom end by technical spot deals. In addition to the consultation responses, a market survey in November 2018 resulted in mixed responses and showed there was market confusion around the issue of fibre grade product sold into the technical sector. ICIS will review this again in 2020.
With a view to adding a new FCA or FD Mediterranean assessment, ICIS will survey the market to find sufficient sources for this information.
On the Europe monthly contract price, ICIS will continue to report the settlement when it happens, and cannot guarantee at what stage of the month this will happen. No alternative methodology has met with support from contract partners. However, ICIS will review this again in 2020, when alternatives may have been put forward.
To provide further comments or feedback please contact Barbara Ortner, Head of Market Reporting: Barbara.Ortner@icis.com