Houston, 17 December 2018
A new futures contract based on the US physical methanol price from global energy and commodity price reporting agency Argus will be listed on CME Group’s Nymex exchange from 17 December. The new Methanol fob Houston (Argus) futures contract will be financially settled to the Argus Methanol Daily assessment price.
The Argus daily methanol assessment is the most-referenced price among US physical methanol contracts, making Argus the natural choice to deliver a price against which derivative markets can settle. The Argus Methanol Daily service provides market participants with even more transparency and additional tools for settling contracts.
The US continues to increase methanol capacity as it benefits from low feedstock costs and growing global demand. The methanol fob Houston (Argus) futures contract is a new tool for market participants seeking to hedge methanol prices in this evolving market.
“Argus is pleased to have been selected as the source of the daily methanol price to settle the new futures contract,” Argus Media chairman and chief executive Adrian Binks said. “As the methanol market continues to see shifts in supply and demand fundamentals, the Argus daily methanol price will reflect changing market dynamics in an accurate and timely way.”
“We are pleased to work with Argus on launching a US Gulf coast methanol contract. This is a significant step for the domestic methanol industry, and with the US poised to become a net exporter in the next year, the contract will also help international participants to hedge their price exposure,” Owain Johnson, CME Group managing director of energy research and product development, said.
About Argus Media
Argus is an independent media organisation with almost 950 staff. It is headquartered in London and has 21 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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