This transition is creating widespread uncertainty across both physical and financial markets. Futures traders are pulling back, physical contracts are becoming more complex to price, and the disconnect between legacy benchmarks and real-world trades is widening.
In this Insight Paper, we explore why a dual-index approach is now essential to accurately price the spread between the old and new specifications. We examine how the physical market — particularly in China — is steadily moving away from the financial settlement index, and why this divergence is introducing friction and risk. Most importantly, we present a clear, forward-looking solution that restores clarity to quality differentials and treats the ongoing transition as an opportunity to resolve long-standing issues in the pricing mechanism.
This paper outlines how the industry can move forward with confidence — and why now is the time to act. Read the full insight to find out more.
Download the insight paper
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About Argus Media
As a leading authority on energy and commodity markets across the globe, Argus is uniquely positioned to provide in-depth analysis and expert thought leadership. Our white papers are carefully written by Argus specialists from across our company. Each white paper focuses on a topical theme, exploring areas such as supply and demand dynamics, price trends, trading activity, and changing regulations. We always aim to provide a balanced view, underpinned by data and insight gathered firsthand from the market.