SUBSCRIBER NOTE: Platts changes US ethylene delivery basis

Effective September 2, 2014, Platts will change the timing basis in its US spot ethylene assessment to current delivery month (M1) and next month (M2) from the current 3- to 30-day basis.

Based on market research and feedback, the M1, M2 basis more adequately reflects the US olefins spot market, as the primary delivery mechanism for ethylene in the US is via pipeline and follows pipeline scheduling.

The proposal was first announced April 25, 2014, and the extended comment period ended July 15, 2014. Platts will change the current delivery month roll into next delivery month three (3) calendar days before the end of the month. If the end of the month falls on a weekend or holiday, Platts will roll its US spot ethylene assessments to the next month on the next business day. For example, the last day that September 2014 will be reflected in its M1 assessment would be September 26. The M1 assessment on September 30 would reflect October delivery. The last day that October would be assessed as M1 will be October 28. All other assessment parameters will remain in effect. Spot ethylene will remain assessed on a free-delivered (FD) basis into the US Gulf Coast pipeline system in Texas, with standard cargo size of 5-10 million lb and minimum purity of 99.9%.

Please direct any questions or comments to petchems@platts.com with a copy to pricegroup@platts.com. Please provide a clear indication if comments are intended for publication by Platts for public viewing. Platts will consider all comments received and will make these comments available on request.