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Home / Knowledge / News / Textiles / INEOS re-affirms support of monthly contract pricing for ethylene & propylene

INEOS re-affirms support of monthly contract pricing for ethylene & propylene

12
Dec '08

In July 2008 INEOS announced its support for a monthly contract pricing mechanism for ethylene and propylene.

As a major olefin buyer, INEOS stated that the quarterly pricing mechanism, which can lead to huge corrections in the monomer price, is no longer acceptable to the company's derivative businesses nor their customers.

Since that announcement the evolution of global oil prices and the unprecedented fall in global demand for ethylene and propylene derivatives currently has further highlighted the need for change.

A monthly pricing mechanism would allow the European chemical industry to react positively to these challenges and ensure that it remains responsive and competitive in the global market.

INEOS proposes to establish a monthly pricing mechanism effective from 1st January 2009 and continues to discuss this with suppliers.

INEOS

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