C1 Price Assessment General Methodology
C1 Energy, or C1, is the first independent and professional market intelligence publisher established in China. C1 has initiated a brand-new mode for analyzing, reporting and pricing in China’s petroleum market, persistently providing first-hand, professional, unbiased and reliable market information and trading benchmarks. C1 is widely acknowledged as the best intelligence source on the China’s oil/gas markets by both domestic and international market players.
Over the years, C1 has established systematic pricing methodology in data collection, information analysis and prices publishing. This methodology has been tested by the market and periodically updated to reflect changes in the market and in trading practices. C1 publishes C1 price assessments as well as ex-refinery/plant posting prices of enterprises and futures prices, etc. C1 price assessments reflect the transactable value range of the oil commodities in line with C1’s assessment specifications. Ex-refinery/plant posting prices reflect the posting prices of oil producers. Futures prices reflect the settlement prices of oil futures exchanges.
C1 has been dedicated to establish scientific methodological approaches, which are more adaptable to China’s market and trading practices, through years of extensive consultation with the industry and rich experiences in talents training and enterprise growing.
C1 price assessments reflect the transactable value of the oil commodities in line with C1’s assessment specifications. The Assessments include but are not limited to C1 domestic price assessments, C1 international price assessments and C1 freight rates assessments. C1’s assessments reflect fixed-price deals and floating transactions.
C1’s specialists collect market information and intelligence from a wide range of sources before assessing the market. The information include bids, offers, deals confirmed by both or one party, unconfirmed transactions, as well as market supply/demand fundamentals, production cost, products inventory and market sentiment. The sources of information include producers, traders, end-users as well as independent service providers to the seller or buyer. The specialists collect the data and information via telephone, instant-messages, e-mails, online communication tools and face-to-face interviews, etc.
C1 sets detailed and clear principles for all the assessments (See details in Methodology and Specifications Guide for each oil commodity). These principles include trading window, product, specifications, trading volume, delivery period, delivery point, delivery means, and payment terms, etc. C1 price assessments reflect the traded value of the oil commodities during the assessment period when there is deal done. When there is no deal, the price assessments reflect the transactable value of the oil commodities.
C1 reserves the right of final explanation to its price assessments. C1 has the right not to consider such deals when assessing the market, if these deals are not in line with C1’s assessment principles, or if the buyer and seller are affiliated enterprises, or if the deals were not done on equal footing, with collateral conditions.
C1 closely traces any change in the market and in the trading practice, and accordingly adjusts its price assessment methodological approaches, so as to ensure that its assessments keep in step with evolving market requirements. C1 will advise its subscribers in written form of any change to the assessment methodology and/or principles one week before the official adaptation.
C1 is completely impartial and independent in its role as a market observer and reporter. It stays neutral and keeps its price discovery process transparent. Keeping these principles in mind, C1’s editorial specialists, who scatter in Shanghai, Guangzhou and Beijing, promise to assess the market neutrally and transparently with their market expertise, background information and extensive client pool.
C1’s price assessments have been used in contracts settlement, business negotiations in spot market, customs price inspections, assets assessments, mediation of trade disputes, by domestic and international producers, traders, end-users, banks and customs, etc.
Disclaimer
C1 tries its best to provide the most accurate assessments to be referred as benchmarks
in market transaction. However, C1 disclaims any liability whatsoever arising from
the use of its assessments.
Appendix
|
Region |
Province/Municipality |
|
Northeast China |
Liaoning, Jilin, Heilongjiang |
|
North China |
Beijing, Tianjin, Hebei, Shanxi, Henan, Inner Mongolia |
|
Northwest China |
Xinjiang, Qinghai, Gansu, Ningxia, Shaanxi |
|
Southwest China |
Chongqing, Yunnan, Guizhou, Sichuan, Tibet |
|
Central China |
Jiangxi, Anhui, Hunan, Hubei |
|
South China |
Guangdong, Guangxi, Fujian, Hainan |
|
East China |
Shanghai, Zhejiang, Jiangsu |
|
Shandong |
|
Latest Update: March 10, 2009