Ethylene Glycol Methodology Consultation – Summary of responses
Following the recent announcement that ICIS would be launching a formal methodology consultation process, we have received a number of responses from key market players. To read the one anonymised public response please click on the link below.
ICIS received in total 3 responses to the Ethylene Glycol Methodology Consultation.
ICIS Initial Decision
ICIS will continue its current methodology for deals-based reporting of ethylene glycol contract and spot markets in all geographical regions.
There were three written responses to the global consultation.
These three respondents asked for a change in the methodology for assessing the MEG Europe weekly spot price. One wanted it rebadged as fibre grade only. Two wanted two separate assessments: for fibre grade and for technical/industrial grade. However, five verbal responses have been against this. Further research will be done on this, so that any change would be made by January 2015.
There was one request to remove the DEG CIF ARA T2 spot assessment from the Europe report on grounds of illiquidity. Further research will be done on this, with a view to any change being made by January 2015.
There was one request to change DEG FD NWE to DEG FCA NWE. However, a recent survey of market participants in this product showed continued support for its retention.
One respondent requested more clarity about the criteria used to change the spot price assessment range, and the source of contract settlement information. For the criteria ICIS uses to make spot and contract assessments, see the ICIS General Methodology document at: http://www.icis.com/about/methodology/general/
Another commented that the Europe spot delivery time should be amended. These details have been added to the published methodology (truck size and delivery in current month).
To provide further comments or feedback on the ICIS ethylene glycol methodology, please contact:
Barbara Ortner: Barbara.Ortner@icis.com
Caroline Murray: Caroline.Murray@icis.com
Jeffrey Ong: Jeffrey.Ong@icis.com
Feliza Mirasol: Feliza.Mirasol@icis.com