Abbreviations in PetroChem Wire Reports

A4
'A' is the Colonial Pipeline moniker for CBOB. This is the most common grade of gasoline used in the US. It is a lower octane gasoline (83.7) that becomes finished gasoline when it is blended with 10% ethanol. The ethanol portion of the final blend is not added until right before the truck leaves a terminal for a retail outlet.
ABS
acrylonitrile butadiene styrene 
bbl
barrel
Bcf
billion cubic feet
BTX
benzene, toluene, xylene
BV
blend value
C2 XLDH
ethane non-Louis Dreyfus Highbridge system
C3 LDH
propane Louis Dreyfus Highbridge system
C4 XLDH
butane non-Louis Dreyfus Highbridge system
C5 XLDH
natural gasoline non-Louis Dreyfus Highbridge system
CBOB
conventional blendstock for oxygenate blending
CFR
cost & freight
CGP
chemical grade propylene
Choc
Choctaw, LA pipeline system
CIF
cost, insurance & freight
CIP
carriage & insurance paid 
CoPP
copolymer polypropylene
cpg
cents per gallon
cpp
cents per pound
CPT
carriage paid to
D4
'D' is the Colonial Pipeline moniker for premium gasoline. When blended with 10% ethanol it becomes 93 octane premium gasoline.
DAF
delivered at frontier (border)
DAP
delivered at place
DAT
delivered at terminal
DDP
delivered duty paid
DDP HTC
delivered duty paid to Houston/Texas City
DEL
delivered
Dlvd
delivered
DWV
drain, waste and vent pipe
EDC
ethylene dichloride
EIA
Energy Information Administration
EPC
Egyptian Petrochemicals Company
EPC
Enterprise Products Company
EU
European Union
EXW
ex-works
FAS
free alongside ship
FCA
free carrier
FOB
free on board
gal
gallon
GP
general purpose grade
GPPS
general purpose polystyrene
HDPE
high density polyethylene
HDPE BM
high density polyethylene blow molding
HDPE BM HIC
high density polyethylene blow molding household industrial chemicals 
HIC
HIPS
high impact clarity
high impact polystyrene
HMWPE
high molecular weight high density polyethylene
HoPP
homopolymer polypropylene
HS
high sulfur
ICBs
intermediate bulk containers
ICE
Intercontinental Exchange
IM
injection molding
Inj grade
injection grade
lb
pound
LDPE
low density polyethylene
LLDPE
linear low density polyethylene
LS
low sulfur
LWCO
Low Water Carryover
M3, M4
'M' is the Colonial Pipeline moniker for finished 87 octane gasoline, "conventional" gasoline that is not very common in the US anymore. It is essentially an export grade of gasoline. The numbers after the letters, A4 M3, etc, refer to the volatility of the gasoline; the higher the number, the more volatile. In the winter, gasoline needs to be more volatile to burn in cold temperatures. The highest RVP, A5 is used int the northern climes, while the south uses A4. The numbers decrease as we head to summer, so M1 or A1 is the summer grade of gasoline in the South and M2 or A2 is used in the north. 
MC
mixed colors
MEG
mono-ethylene glycol
MI
melt index
mmBtu
millions of British thermal units
MRF
materials recovery facility
MtB-Wms
Mont Belvieu, TX Williams pipeline system
MTD
Month-to-Date
MX
mixed xylenes
N+A Naphtha
naphthenic and aromatic naphtha
n-butane
normal butane
NGL
natural gas liquid
NTP
net transaction price
NYMEX
New York Mercantile Exchange
OPS
oriented polystyrene
PC
post consumer
PDH
propane dehydrogenation
PE
polyethylene 
PET
polyethylene terephthalate 
PGP
polymer grade propylene
PI
post industrial
PP
polypropylene
PS
polystyrene
PTA
purified terephthalic acid
PVC
polyvinyl chloride
RBOB
reformulated blendstock for oxygenate blending
Repro
reprocessed
RGP
refinery grade propylene
rPET
recycled PET
TCI
Trust Sanmar Chemicals, Egypt
USG
US Gulf
USGC
US Gulf Coast
USWC
US West Coast
VCM
vinyl chloride monomer
WCSA
West Coast South America
WTI
West Texas Intermediate
YOT
yarn-on-tube

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Glossary of Common Market Terms

Backwardated: A market where prices fall as time goes forward. A prompt price that is higher than a later month price suggests that buyers are looking for a product now because they are short. Example: May crude is $61/bbl. June crude is $60/bbl. May/June crude is $1/bbl backwardated.

Bid: A bid to buy a commodity at a specific price for a specific time period, such as a bid for Feb ethylene at 50 cents.

Broker: In most markets, a broker is a neutral party that facilitates spot market trades, matching buyers and seller and taking a fee only based on the volume of the trade and not the price. In resin markets, however, parties that conduct “back-to-back” trades, buying from one party and selling to another, keeping the price difference between the two rather than a volume-based fee, are also referred to as brokers. In other markets, they would be called broker-dealers.

Butterfly Spread: A spread market that involves three separate price points (normal spreads involve two). Example: A 2Q/3Q/4Q butterfly bid at 0.125 cpp backward.

Cleared Trade: A trade conducted on an exchange such as the CME or ICE in which the exchange guarantees financial performance on the deal.

Contango: The opposite of backward; prices increase over time. Example: May crude is $60/bbl. June crude is $61/bbl. May/June crude is $1/bbl contango.

Deferred Market: Synonymous with Forward Markets, Deferred Markets are further out in the future, typically from two to 24 months.

Differential Value as relative a benchmark: Gasoline was a 5 cent differential under the March RBOB contract. Or Mars crude traded at $2.50/barrel under WTI.

Drool: The excess plastic materials collected during the extruding or molding process.

Exchange for Physical: A commodity transaction where a buyer or seller links its physical transaction to a futures market. “Company x bought gasoline on February 9 from company Y at 5 cents/gal below the March NYMEX RBOB contract settle.” This is the common way that gasoline and diesel are traded on the physical market in Houston, New York, Chicago and Tulsa.

Forward Market: Markets that are in the future. Example: Prices this month (Jan) are rising but forward markets have stabilized with June and July trading at the same price.

Front Month: The current month or the first month available for a contract. With futures contracts, for example, the first contract is for the next month. In January, the front month for NYMEX natural gas is February.

Futures Market: A commodities market such as the NYMEX that trades fungible commodities in a current market and well into the future – 12 to 24 months. Usually allows for physical delivery.

Implied Value: An outright price that is implied by a differential price. If the NYMEX gasoline contract of $2/gallon is trading at 2 cents under, the implied price is $1.98/gal.

Melt Flow: The measure of the rate at which polymer melts from its pellet or flake form.

Offer: An offer to sell a commodity at a specific price for a specific time period, such as an offer for Feb ethylene at 60 cents.

Paper Swaps, or a paper contract: Settled against an exchange or some kind of settlement index. Usually there is no physical delivery. If company X buys a commodity at $1 in June from company Y, and the relevant exchange settles at $3, the seller would owe the buyer $2 times whatever the volume if the transaction was. Unlike a futures market (where a seller could deliver a physical product), a swap only involves a cash settlement.

Resale Market: In the North American resins markets, this is a market in which distributors sell material to end-users.

Spread: 1) The price relationship between two specified time periods, such as the Jan/Feb spread or the 1Q/2Q spread. 2) The price relationship between two specified commodities, such as the Ethylene/Polyethylene spread, or the Propane/Propylene spread.

Strip: Consecutive time periods, expressed as individual months (a May-June strip) or in a financial calendar format (a 2Q 2016 strip, meaning April through June).

Swaps: Another word for a paper market (see Paper above).

Wet Barrels: Physical product specified for immediate delivery.

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