HOUSTON, April 28, 2017 /PRNewswire/ --
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.
ICIS is the world's largest petrochemical market information provider as well as publishing benchmarks that are widely used in the energy and fertilizer markets. Our aim is to give participants in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions. We have more than 30 years' experience in providing pricing information, news, analysis and consulting to buyers, sellers and analysts.
ICIS has a global staff of more than 400, and its main offices are in London, Singapore, Shanghai, Houston, New York, Karlsruhe, Milan, Guangzhou and Tokyo. Its Editorial team of 180 report thousands of market prices and news events each week, and ICIS is fully committed to upholding the highest principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles, and has successfully passed annual external audits since those regulatory guidelines were introduced in 2012.
ICIS is a division of Reed Business Information, part of RELX Group. Further information can be found at www.icis.com.
About Reed Business Information:
At Reed Business Information we provide information and online data services to business professionals worldwide. Customers have access to our high-value industry data, analytics, information and tools. Our strong global brands hold market-leading positions across a wide range of industry sectors including banking, petrochemicals and aviation where we help customers make key strategic decisions every day. RBI is part of RELX Group Plc, a leading global provider of data, information and solutions for professional customers.
About RELX Group:
RELX Group is a world-leading provider of information solutions for professional customers across industries. The group employs about 28,000 people of whom half are in North America. RELX PLC is the London Stock Exchange listed vehicle for holding shares in RELX Group. Shareholders in RELX PLC own a 52.9% economic interest in RELX Group. RELX NV is the Amsterdam Stock Exchange listed vehicle for holding shares in RELX Group. External shareholders in RELX NV own a 47.1% economic interest in RELX Group. The total market capitalisation of the two parent companies is approximately £31.3bn/ €36.9bn/ $40.3bn. Its shares are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RUK and ENL. www.relx.com
For further information about this release, please contact:
Senior Marketing Manager, ICIS