Platts Adds Petrochemicals To Its Offering Of Forward Price Curves

Platts, a leading global energy and commodities information provider has expanded its commodity risk solutions portfolio to include forward curves* for a range of aromatic petrochemicals through two products, each produced for Asia, North America and Europe. 

"This is a natural extension to our existing offering of forward price curves in oil, natural gas, coal and electric power," said Paul Waine, Platts global director of commodity risk solutions. "We're pleased to provide the petrochemicals marketplace with an independent source of data that gives insight into the current price for contract delivery up to 24 months forward, which will support purchase and sale decision making, fair value** financial reporting and price risk management activities."

Via Platts Forward Curves-Petrochemicals (PFC-Petchems), subscribers will have access to forward curves that are based on Platts' long-established Market-On-Close (MOC) price assessment process and reflective of open market values at the close of every trading day in Asia, Europe and North America. The product includes 40 forward curves, spreads and differentials on a regional basis; and forward prices for key petrochemical inputs. Price data is provided in half months, months and quarters.

PFC-Petchems' coverage includes the following:   

• Benzene
• Naphtha
• Paraxylene
• Toluene
• Isomers
• Styrene
• Brent
• Propane
• Mixed Xylene

Companies with exposure to commodity prices typically utilize forward price curves as references for valuing contractual assets and liabilities, measuring profit and loss resulting from changes in market prices and making better informed risk management decisions.

In addition to the petrochemicals forward curves based on Platts' open market price discovery processes, the petrochemical industry now has access to the only 24-forward-month benzene price curves as derived by quantitative model, based on Platts editorial market knowledge and extensive database of historical market prices. The new model-based curves are available via M2M-Benzene, an add-on option to PFC-Petchems. These model-derived values reflect the observed market price relationships between benzene and related crude oil and refined products.

The combined offering of price curves based on open-market price discovery processes and by quantitative model facilitates the industry's need for price references that meet a variety of purposes, including accounting activities in line with the U.S. generally accepted accounting principles (GAAP) and the International Accounting Standards Board's international financial reporting standards (IFRS).

Through its risk management data services, Platts provides clients with a full and independent view of forward price assessments for natural gas, power, oil, and coal in regions around the world. In addition to more than 400 forward curve price assessments, Platts publishes more than 20,000 benchmark price assessments, references and indexes in energy, petrochemicals, metals and agriculture on a daily basis.

*A forward price is the price today for an obligation to buy or sell on a specific date in the future. A forward price curve shows tradable values for the same obligation to buy or sell for a series of future dates (it is not a forecast).