Houston, 1 July 2024
Global energy and commodity price reporting agency Argus is launching a suite of indexes based on polyethylene transactions in the US. These aim to increase market transparency in the domestic markets.
The US polyethylene industry has evolved in recent years, and exports now account for 45-50% of production. Domestic contract prices are heavily influenced by spot market transactions. These spot deals are a strong leading indicator for the domestic contract prices negotiated monthly between producers and buyers in the US.
The Argus Polyethylene Transaction Index (PTI) is a set of calculated polyethylene prices based on domestic and export trading activities. Published on the first business day of each month, the PTI covers the three main polyethylene resin families: high-density blow-moulding (HDBM), linear low-density butene film (LLDPEC4), and general-purpose low-density polyethylene (LDPE).
The methodology for the PTI was designed in consultation with participants across the whole polyethylene value chain. It reflects prior month spot export polyethylene prices, weighted to account for the balance between export and domestic sales volumes as reported by the American Chemistry Council. The index excludes discounts or other price adjustment factors and represents the value of domestic sales of prime resin to large volume buyers in railcar quantities.
Argus Media chairman and chief executive Adrian Binks said: “We are pleased to bring new and timely price transparency to the US polyethylene contract market settlements. Our methodology has been validated by participant feedback and shown to avoid the uneven price adjustments arising from bilateral rebate discounts and price settlement delays that have characterised and caused problems for this important market."
Contact information
London: Seana Lanigan
Email: press@argusmedia.com
Houston: Matthew Oatway
Email: press@argusmedia.com
Singapore: Tomoko Hashimoto
Email: press@argusmedia.com
About Argus Media
Argus is an independent media organisation with nearly 1,300 staff. It is headquartered in London and has 29 offices in the world’s principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets and offers bespoke consulting services and industry-leading conferences.
Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.
Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders and global growth equity firm General Atlantic.
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