Starting this week, ICIS is offering a new monthly contract reference number in its US Butadiene/C4’s report in response to market calls for a direct average of contract nominations.
The ICIS US April FOB (free on board) USG (US Gulf) Contract Reference Price will be a single number based on the average of contract nominations by the four major US butadiene producers. Each of the producers’ numbers will be given equal weighting.
“In a recent methodology consultation with subscribers, a majority asked that we provide this new benchmark to reduce the volatility that is seen in weighted-average calculations,” said ICIS Americas Managing Editor Jeremy Pafford.
“Market participants are looking for an assessment with minimal surprises. This direct average approach does just that,” Pafford said. Market participants have complained that the weighted-average approach does not take into account operating rates and the availability of supply, leading to flawed reporting of the monthly contract price.
ICIS will also continue to publish in the US Butadiene/C4’s report an industry-range contract assessment based on the full range of like-based nominations, as well as spot butadiene and crude C4 prices on CIF (cost, insurance and freight) USG and FOB NWE (northwest Europe) bases.
For further information about this release, please contact:
Senior Marketing Manager, ICIS
Direct: +1 (713) 525 2673
ICIS is the world’s largest petrochemical market information provider, with divisions spanning energy and fertilizers. Our aim is to give companies in global commodities markets a competitive advantage by delivering valuable information and analytics tools which enable our customers to identify and react to opportunities in markets which are constantly evolving. We have more than 30 years’ of experience in providing pricing intelligence and news, forecast data, market analytics and independent consulting to buyers, sellers and analysts.
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