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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Onyx Markets NGL C3 FEI/MOPJ NGL Asia – Commodity Differential Spread Bet

C3 FEI/MOPJ NGL Asia – Commodity Differential Spread Bet

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Name & Trade Code

Contract Name C3 FEI/MOPJ($/0.01)
MT5 Code C3_FEI/MOPJ.s
Contract Classification Commodity Differential SB
Geographical Region Asia

Contract Specification

Sector Energy
Product Group NGL
Tenor Period Consecutive individual whole calendar months, e.g. May 25
Maximum Forward Tenor Up to 18 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit
Trading Price Quote $/mt
Price Digits 2
Currency USD
Tick Value 1
Tick Size 0.01
Minimum Volume 1
Volume Steps [Lots] 0.01
Settlement Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.
Margins Download a summary or detailed document with tiers.

Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 30 May 2025 for May 25 Tenor Period)
Last Trading Day (for new open positions) Five working days prior to the Contract Expiry Date for the Tenor Period (i.e. 23 May 2025 for May 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period

Tenor Period Settlement Valuation Process

Open Volume The net open volume for the expiring Tenor Period
Daily Settlement Value Market-on-Close – The daily assessment settlement time, e.g. 4:30 pm for European contracts
Daily Settlement Volume Each day during Tenor Period, the remaining Open Volume reduces by the equivalent of 1/ (number of pricing days in the Tenor Period, including today if prior to Market-on-Close) and be settled at Daily Settlement Value
Final Settlement Price Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.

Contract Purpose

This contract enables market participants to:

  • Trade the price spread between Far East Index (FEI) propane and Japan naphtha (MOPJ) directly.
  • Hedge exposure to the relative value of propane and naphtha, two of the most important petrochemical feedstocks in Asia.
  • Manage risk associated with shifts in supply, demand, and seasonal trends affecting the propane–naphtha relationship.
  • Implement trading strategies that reflect the economics of switching between propane and naphtha in Asian steam crackers and other industrial processes.

Market Significance

Feedstock Economics Benchmark:
The C3 FEI/MOPJ spread is a key indicator for Asian petrochemical producers and traders, reflecting the cost-effectiveness of using propane versus naphtha in the region’s steam crackers. This relationship directly impacts margins for ethylene and propylene production.

Arbitrage and Substitution Insight:
The contract captures market dynamics around feedstock substitution, especially when price movements or supply disruptions make one product more attractive than the other. This is particularly relevant during periods of high volatility or when global trade flows shift.

Risk Management Tool:
Petrochemical companies, traders, and financial institutions use this spread to manage their exposure to volatility in propane and naphtha prices, helping to ensure more predictable margins and optimised feedstock selection.

Trading Benefits

  • Spread Trading Efficiency: Enables direct trading of the propane–naphtha spread without holding outright positions in both markets.
  • Risk Management: Offers an effective hedge for those exposed to inter-product price swings and feedstock arbitrage opportunities.
  • Price Discovery: Facilitates transparent valuation of the relative value between propane and naphtha in the Far East.
  • Capital Efficiency: Reduces margin requirements compared to trading both legs separately.

This contract is especially valuable for petrochemical producers, trading houses, and financial institutions active in the Asian NGL and naphtha markets. It provides a focused tool for managing exposure to one of the most actively traded and closely watched price spreads in the region’s energy and feedstock sector.