UK petrochemical company, INEOS have reiterated its support for monthly contract pricing mechanism for ethylene and propylene after backing the same in July, 2008. The company has proposed to establish a monthly pricing mechanism effective from 1st January 2009 and is in discussions with its suppliers. As a major olefin buyer, INEOS stated that the quarterly pricing mechanism, which can lead to huge corrections in the monomer price, is no longer acceptable to the company's derivative businesses nor their customers. As per the company, the unprecedented fall in global demand for ethylene and propylene derivatives and global evolution of oil prices has further emphasized the need for change. The company says, a monthly pricing mechanism would allow the European chemical industry to react positively to these challenges and ensure that it remains responsive and competitive in the global market.