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 acetone weekly publications.
The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific acetone market issues.
Click here to view the Acetone Methodology Consultation 2020
Summary of responses
The consultation asked general questions about the suitability of the ICIS pricing methodology.
ICIS received one response, requesting that the Europe contract assessment should be set by calculation from a discounted monthly propylene contract price. Also that the FOB Rotterdam spot assessment basis should be more clearly defined in the methodology. Thirdly, that a wider range of buyers, to include both large and small, should be used for the spot market assessment.
Decision
In the absence of confirmed freely negotiated monthly contract prices into the MMA sector, a methodology using a feedstock-based formula received support from the market in mid-2019. Accurate information about discounts on the propylene contract reference price cannot be confirmed on a regular basis. This information on discounts is always private and confidential, so it is not possible to use a discounted contract price as the basis of the acetone contract formula.
ICIS will not be proposing any other immediate changes to the methodology of the acetone 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 acetone 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
