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 methyl methacrylate weekly publications.
The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific methyl methacrylate market issues.
Click here to view the Methyl-Methacrylate-MMA-Methodology-Consultation-2019
Summary of responses
The consultation asked general questions about the suitability of the ICIS pricing methodology.
ICIS received three responses. This summary takes into account all responses.
One respondent felt that Europe MMA prices had diverged between those buyers who are in PMMA and those in other sectors, and that therefore there should be two separate assessments.
Another respondent noted that the methodology worked well, but that there could sometimes be a lag in reporting price movements. The single number contract reference price settlement process would not be suitable for the MMA market.
Two respondents noted that the US assessments were unrealistically high, and one suggested there was a need for a non-market adjustment to align with current market levels.
One respondent suggested different spot assessments for small and large buyers, and would like to see more demand-side coverage.
Decision
On account of limited liquidity in this market, ICIS is not able to go ahead with splitting the spot assessment into two sectors.
ICIS will look into the US assessment, and will clarify in the methodology how the low end of the Europe spot assessment represents large buyers and the top end smaller buyers.
ICIS will not be proposing any other immediate changes to the methodology of the MMA reports. Any decision to change this methodology will be communicated to subscribers using the usual channels and with the usual notice period.
ICIS continues to welcome any feedback on its MMA methodology outside of the formal consultation process.
To provide further comments or feedback please contact Barbara Ortner, Head of Market Reporting: Barbara.Ortner@icis.com
