Argus Northwest Europe Ethylene Index
An independent monthly price index for the European ethylene market, combining movements in cracker feedstock and spot ethylene prices within a transparent methodology.
Overview
The Argus northwest Europe ethylene index provides an independent price reference for the European ethylene market. Developed through discussions with market participants, it demonstrates a clear, consistent monthly measure to inform pricing decisions.
The index is designed to support existing Monthly Contract Price (MCP) negotiations and provide an alternative basis for commercial pricing mechanisms. Published on the first working day of each month, it includes an outright index price and the movement from the previous month, whilst weekly tracking shows its direction ahead of final publication.
The methodology combines established Argus assessments for cracker feedstocks and spot ethylene prices and can be reviewed as the market evolves. Any changes would follow the Argus consultation and market notification process.
These prices are found in Argus Ethylene
Find out morePrice assessment details
Published in €/t on the first working day of each month, the index provides:
- an outright monthly benchmark price
- the change from the previous month
- weekly month-to-date tracking
The monthly movement is calculated using a weighted combination of spot cracker feedstock and ethylene prices, all assessed by Argus. Feedstock pricing accounts for 70pc of the movement, based on naphtha, propane and butane. Northwest European spot ethylene pricing accounts for the remaining 30pc.
Historical modelling indicates that the index remains closely correlated with the European ethylene market while responding quickly when feedstock costs or spot market conditions change.
How the Argus northwest Europe ethylene index can be used
Contract pricing
Companies can incorporate the index into contracts according to their own commercial requirements. It may be used as an outright monthly reference, as the basis for an agreed adjustment, to apply a monthly movement to an existing contractual price or as a fallback within commercial agreements.
Market comparison
The index can provide an additional reference for MCP negotiations, allowing producers and buyers to compare existing contract prices and procurement costs with movements in feedstock and spot ethylene markets.
Budgeting and commercial planning
Monthly publication provides sales, procurement and planning teams with an objective reference for in-month budgeting and internal reporting. Weekly tracking offers earlier visibility into the direction of the final index every Friday, giving subscribers the flexibility to negotiate within the month.