Caustic Soda Methodology Consultation – Summary of responses
Following the announcement that ICIS would be launching a formal methodology consultation process, we have received three responses to consultation GMC 06/18. The first response is to be made public but anonymised, at the sender’s request. The other two are confidential.
The main point of the first response was that the ICIS FOB US Gulf Export assessment criteria should be expanded to include larger parcels, up to 25,000 dmt, and alumina buyers.
To read the public response, please click on the link below.
There were three formal responses to the Caustic-Soda-Methodology-Consultation-2018.
ICIS Decision
ICIS received three formal responses to the methodology consultation, as well as four verbal responses. All of these focused on the ICIS Caustic Soda Liquid Spot USG export assessment in the Caustic Soda US Gulf report.
Various changes to the USG export assessment were suggested, and the ICIS decision was based on what would give fair market value as well as represent the majority view and be sustainable.
ICIS intends to implement a change to the cargo size assessed, increasing the size to 1,000-10,000 dmt.
ICIS will include all sectors in this size range, including the alumina sector. It is accepted that at certain times this may result in a wide price range.
ICIS hereby gives notice that this change will be implemented with six months’ notice, so will take effect in the report of Friday 7 September 2018.
ICIS continues to welcome any feedback on its caustic soda 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
