The new northwest Europe indexes incorporate a weighted combination of spot chemical prices and cracker feedstock costs, including naphtha, propane, and butane. By moving away from purely negotiated contract prices, these tools offer industry participants a more responsive reference point for long-term supply agreements.

Adrian Binks, chairman and chief executive of Argus, noted that the industry’s reliance on historical monthly contract price benchmarks has struggled to keep pace with observed market realities. These traditional mechanisms have long dictated costs across downstream chains, ultimately impacting the pricing of various consumer and industrial goods. By providing a publicly available methodology, Argus intends to restore clarity to the sector as companies seek alternatives to legacy pricing models.