Platts to launch FD US Gulf polymer grade propylene and ethylene daily month-to-date contract price, June 1

Platts, part of S&P Global Energy, will launch new daily month-to-date contract price indicators for the US Gulf Coast polymer-grade propylene and USGC ethylene markets, effective June 1, to give market participants a clearer idea of contract price changes on a daily basis.

The new CP indicators will complement Platts' existing coverage of the USGC ethylene and propylene spot markets and will be in addition to the industry-settled monthly contract prices, which Platts publishes as soon as confirmation on a settled price is received.

The new assessments will represent net values for sales and purchases of ethylene and PGP under the long-term agreements, and will be calculated as a month-to-date average of Platts daily spot price assessments for current month (M1) and month-ahead ( M2).

For example, on May 12, FD US Gulf Ethylene Contract Price Indicator for May (M1) will be calculated as the average of the daily assessed spot prices for May delivery (M1), published on May 1-12, inclusive. The June CP indicator will average all spot assessments for June delivery (M2), published on May 1-12. The indicators will roll on the first calendar day of each month.

The new MTD CP price indicators will provide additional visibility to the current industry-settled contract mechanism, allowing market participants to actively gauge the value of long-term contract cargoes in the run-up to settlement.

Full details of the new indicators are below:

The indicators will be published in cents/pound and will have a clear month label.

The new indicators will be published in Olefinscan, in Platts database and on S&P Global Energy Core and on Fixed Pages PCA0236, PCA0237, PCA0301, PCA0309, PCA0438 and PCA0439.

Please send any questions, comments or feedback to petchems@spglobal.com, with a copy to pricegroup@spglobal.com.

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