OverviewChemConnect's Commodities Floor Heats Up as the Industry Responds to Volatile Energy Prices
Company reports record volume on its Commodities Floor in January and February as buyers and sellers migrate online to get market prices
Houston, Texas, March 14, 2001 – ChemConnect Inc., the host of the World Chemical Exchange where buyers and sellers of chemicals and plastics get market prices, today reported record trading volume in benzene, methanol, and MTBE in January and February 2001 on its Commodities Floor. Based on a highly volatile energy market over the last three months, companies and traders took advantage of fluctuating prices and uncertain conditions using the Commodities Floor to gauge market activity and conduct spot trades quickly in an unpredictable market.
As producers, consumers, traders, and distributors of petrochemicals sought to respond quickly to the market, many turned to the Commodities Floor to monitor market conditions in real time. Using the online marketplace, Commodities Floor Members gained immediate access to real market prices, conducted transactions instantly, and closed deals faster than the traditional methods of phone and fax.
The Commodities Floor moved more than 400,000 metric tons of commodity chemicals in both January and February 2001. In addition, completed transactions for benzene, methanol, and MTBE experienced triple-digit growth. Average transaction values rose steadily to $900,000 per transaction at the close of February 2001, more than double the average transaction value since December of 2000.
"Buyers and sellers benefit from online commodities trading because it allows them to act and react immediately to price fluctuations," said Dave McCaskill, Director of Methanol Services for Chemical Markets Associates (CMAI), a Houston-based international petrochemical consulting firm. "Recent volatility in the energy market reinforces the need for resources that provide transparent pricing, product liquidity, and global opportunities that shape the market."
"In a highly competitive market, the winners are those who can get the most immediate and accurate information on market prices, news, and trends, and act quickly based on market activity," said Stan Klocek, VP Global Commodities Floor Sales & Operations for ChemConnect. "As the energy market continues to fluctuate, our Members benefit from access to real-time market activity and information, key to anyone making business decisions."
The Commodities Floor is a secure online trading area of the World Chemical Exchange where pre-qualified Members can trade standard, high-volume petrochemical products through worldwide trading hubs. The Commodities Floor's 10 pits are for benzene, mixed-xylenes, para-xylene, toluene, ethylene, MTBE, propylene, methanol, naphtha, and styrene. Producers, consumers, traders, and distributors of petrochemicals benefit from the ability to get the best market prices and complete transactions quickly.
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.