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 phenol weekly publications.
The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific phenol market issues.
Click here to view the Phenol Methodology Consultation 2023 – GMC0623
Responses
ICIS received two responses, and this summary takes into account both of them.
ICIS was asked to discontinue its CFR China Main Port price assessment due to low liquidity. It was also suggested that ICIS should combine its India coverage with the broader SE Asia market. The inclusion of a SE Asia FOB quote was also requested in addition to more information about the European market, including more details on the difference between spot and contract prices.
Decision
ICIS decided to keep the Cost and Freight (CFR) China Main Ports (CMP) assessment until the end of 2023 to support term contracts which are still based on the quote. ICIS will make a final decision on whether to discontinue this assessment by the end of September and subscribers will be informed in advance of any potential changes. ICIS decided to keep its India and Southeast Asia (SE Asia) coverage separate due to different trading dynamics between the two regions. ICIS also decided not to add a Free on Board (FOB) SE Asia quote to its coverage. While there are some spot cargoes sold on an FOB SE Asia basis, liquidity is limited as the bulk of spot deals are done on a CFR basis. Should liquidity improve in the future, ICIS may consider adding an FOB SE Asia quote.
Update (27 Sept 2023) – ICIS has decided to discontinue the Cost and Freight (CFR) China Main Ports (CMP) assessment from April 2024.
