Consultation

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 acrylonitrile weekly publications.

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

Click here to view the Acrylonitrile-Methodology-Consultation-2019

Summary of responses

ICIS received 2 responses and this summary takes into account both of them.

Regarding the Europe monthly contract price assessment, one respondent wanted this changed for a formula-based assessment.

Another respondent objected to the spot assessment being moved, in weeks of no spot activity, on other criteria than deals.

This respondent also wanted Hungary included in the contract assessment.

Decision

Following the suggestion to change the Europe contract assessment to be formula-based, ICIS will survey the market’s contract participants with a view to a final decision by the end of November 2019. At the same time, we will survey about including Hungary in the contract methodology.

To clarify the methodology for moving spot assessments in weeks with no deals, please note that the standard ICIS methodology is:

“In the absence of any deals, bids and offers will be used. During the assessment process we may consider other information. However actual transactions, and bids and offers will always take precedence.” (page 2, ICIS Acrylontrile Methodology)

https://s3-eu-west-1.amazonaws.com/cjp-rbi-icis-compliance/wp-content/uploads/2019/08/09110253/Acrylonitrile-Methodology-7-August-2019.pdf

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

Consultation on this document closed on 1 August 2019