Platts extends consultation period on European PX contract market coverage

Platts, part of S&P Global Commodity Insights, is extending the consultation period on its coverage of the European paraxylene contract market until May 19, 2023 and continues to welcome feedback on how best to reflect this evolving space.

The consultation was launched March 8 and the subscriber note is available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030823-platts-opens-consultation-on-european-px-contract-market-coverage

Platts recognizes that participation in the PX industry-settled contract price mechanism is decreasing. Platts is therefore seeking feedback on the usage of, and appetite for, alternative pricing mechanisms and how Platts could best reflect these in its coverage.

Platts welcomes any additional feedback on its PX contract price methodology beyond the specific points listed above.

Platts first began publishing the industry-settled European paraxylene contract price in 2003.

Under the current methodology, the monthly contract price is updated when available, once Platts has sufficient information about industry-settled contract prices. In the case of a full settlement, which is defined as a settlement at the same level between at least two independent buyers and at least two independent sellers, a single value is published.

If there is no full settlement, Platts publishes the range of all settlements representing the lowest settlement and the highest settlement heard from market participants, with an average of these price settlements, as per industry convention.

In the event that only one settlement is reported in the market, and corroborated by a sufficient number of market participants, this settlement may be taken as the low, high and average.

Market participation in the industry-settled contract price mechanism for paraxylene has diminished significantly over recent months, with several companies understood to have withdrawn from the settlement process.

Platts clarified its methodology on Feb. 17, 2023, to reflect this: https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/petchemeuropemethodology.pdf

Please send all feedback, comments, and questions by May 19, 2023, to petchems@spglobal.com with a copy to pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.