Independent
The assessment is produced independently from commercial positions in the market.
Independent commodity benchmarks
What is a Price Reporting Agency?
A Price Reporting Agency provides independent price assessments and benchmarks for physical commodity markets where a single transparent market price may not otherwise exist.
Market transparency
The independent point of reference
Commodity markets often contain many bilateral transactions, different specifications and regional price levels. A single visible market price may therefore not exist.
A Price Reporting Agency brings structure to this information. It defines the market being assessed, gathers relevant market input and publishes a consistent price assessment that market participants can use as an independent reference.
The foundations of reliable price reporting
What should you expect from a PRA?
Trust in a benchmark depends on more than the final number. Users need to understand what market is being assessed, how information is evaluated and how the resulting benchmark is produced.
Methodical
Each benchmark follows a defined specification, methodology and publication process.
Representative
The assessment uses information relevant to the defined physical market.
Transparent
Users can understand what the benchmark represents and how it is produced.
The assessment process
How a commodity benchmark is produced
The exact methodology differs by benchmark, but the process follows a clear sequence from defining the market to publishing the assessment.
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1
Specify the marketDefine the product, quality, location, delivery basis, unit, timing and publication frequency.
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2
Gather market informationCollect relevant information from professional market participants with knowledge of physical buying and selling activity.
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3
Evaluate the inputsAssess the information against the benchmark specification, methodology and prevailing market conditions.
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4
Assess and publish the benchmarkApply the defined methodology to determine the price assessment and publish it for the relevant pricing period.
Using a benchmark
A common external reference for commercial decisions
A benchmark creates a shared market reference for buyers, sellers, finance teams and management. How that reference is applied depends on the organisation and the commercial situation.
Contract pricing
Use an agreed external reference when setting or adjusting commercial contract prices.
Procurement
Evaluate supplier offers, support negotiations and explain movements in input costs.
Risk management
Track exposure, monitor market changes and create consistent internal scenarios.
Valuation & reporting
Use an independent reference for inventories, transfers, budgets or management reporting.
Using a benchmark in a contract
A neutral reference can simplify price discussions
A DCA benchmark provides the market reference; the commercial contract determines how that reference is applied. The benchmark specification should match the relevant product, geography and market basis.
This makes it clear what the reference represents before it is incorporated into a commercial agreement.
View our benchmark methodologyDCA as a Price Reporting Agency
Independent benchmarks for European commodity markets
DCA Market Intelligence publishes benchmark prices for selected European commodity markets using defined specifications, methodologies and governance processes.
Each benchmark provides a consistent external market reference. Its specification, historical development and supporting market intelligence can be accessed through DCA Market Intelligence.
Frequently asked
Understanding PRAs and benchmarks
Is a PRA the same as a commodity exchange?
No. A Price Reporting Agency publishes independent price assessments and benchmark references. An exchange operates a marketplace for trading contracts.
Is every reported price a benchmark?
No. A benchmark follows a defined specification, assessment methodology and publication process designed to create a repeatable market reference.
Does a PRA set the market price?
No. A PRA assesses available market information and publishes an independent reference. The physical market remains determined by buyers and sellers.
Why does methodology matter?
Methodology explains the product, market, timing, evidence and assessment process behind a benchmark so users can understand how the reference is produced.