Argus European Benzene Bulletin Board
The Argus European Benzene Bulletin Board is a new service bringing transparency to the petrochemical markets.
The Bulletin Board displays transactions for cif ARA benzene cargoes. Deals are published online as soon as they are confirmed by Argus DeWitt. During the day, a running volume-weighted average is displayed, which underpins the daily Argus DeWitt benzene cif ARA assessment.
Reported deals are used in calculating the European price assessments published in the Argus DeWitt Benzene Daily report. Argus DeWitt has established a transparent and reliable methodology for accurate price calculations which is publicly available to view.
After consultation with the market, Argus DeWitt launched the Bulletin Board in order to provide complete market transparency for European benzene cargoes. Market participants can see the inputs that Argus receives and watch the development of a volume- weighted average over the course of the trading day.
Argus DeWitt is providing the cornerstone in developing the financial benzene market. Customers say that a reliable and transparent price index encourages the development of a forward curve and alongside that, opens the prospect of a financial swaps market. This would enable producers, traders and consumers to hedge risk. Benzene and benzene derivative prices are both volatile and unpredictable, leaving everyone involved in this sector exposed to uncertainty and risk. This in turn affects profitability, investment and planning decisions.
Objectives of the Bulletin Board:
- Greater transparency
- Increased liquidity
- Opportunity for risk management
CME now offers clearing and settlement for benzene swaps in Europe and Asia, settled against the Argus DeWitt cif ARA and fob South Korea prices.
The bulletin board is part of the Argus DeWitt Benzene Daily service. This includes benzene and styrene price assessments for Europe, the Americas and the Asia-Pacific market as well as for associated crude, gasoline, naphtha and natural gas. The report contains full market commentary explaining price movements and details of deals done.
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