INEOS buyers continue to support a monthly contract price for ethylene and propylene in Q2 2009
INEOS has confirmed its support for the continued application of the monthly pricing mechanism for the second Quarter of 2009. The company will again propose a monthly price to its suppliers for April 2009.
This decision follows the announcement in December 2008 when INEOS supported a monthly pricing mechanism with its suppliers effective from 1st January 2009.
As a major buyer, INEOS made initial agreements for January monthly prices for ethylene and propylene with key suppliers. Subsequently these prices and the monthly pricing mechanism have been adopted by the European industry as the only viable price mechanism for the first quarter 2009.
The monthly pricing mechanism has worked very well for the European industry in difficult market conditions during the first Quarter 2009. Participants have demonstrated crucial discipline in timing of settlements and the European industry has been better able to manage the balance between costs, supply and demand to remain as competitive as possible in a global market.
A monthly pricing mechanism will continue to allow the European industry to respond positively to the ongoing challenges and ensure that the European chemical industry remains competitive and profitable in the current, unpredictable global market.
For further information contact:
Richard Longden – INEOS - Tel: +44 (0) 2380 287037