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ChAI enters data-licensing agreement with S&P global commodity insights

Published by ChAI
Jun 24 2023

The company will now be able to provide foresight on Platts Data - marking a significant step in providing real-time commodity price forecasts to global audiences, including multinational businesses and key supply chain providers.

By facilitating timely access to commodity prices and providing forecasts and drivers for price changes, ChAI can help to limit extreme food price volatility.

Ch AI Xall SP

Commodities AI Ltd (ChAI), the AI-driven commodity intelligence company, is pleased to announce a data-licensing agreement with S&P Global Commodity Insights™, the leading independent provider of information, analysis, events, and benchmark prices for the commodities and energy markets. The agreement will enable ChAI to provide real-time commodity price forecasts based on Platts price assessments.

Up until now, ChAI has focused on providing price forecasts for exchange-traded commodities, however, this agreement will enable the company to expand its platform to provide market foresight for a wider range of materials, including spot physical markets.

The announcement marks an important milestone in the company’s product development and capabilities of providing key information to a wide range of stakeholders as the commodity markets continue to experience significant volatility under the current market conditions. Market demand, which was already strong when ChAI was founded three years ago, has significantly increased following the increased uncertainty in markets that global catastrophes such as Covid and the war in Ukraine have produced.

ChAI is on a mission to enable organisations to capture more margin, optimise hedging and reduce exposure across the commodities market. The company uses purpose-built AI to analyse thousands of data sets to identify what variables are driving market prices, predict raw material costs, highlight risk exposure, and help its clients purchase the necessary commodity products effectively and manage their exposure. They are bringing the skills and datasets they had access to from their experience speculating in commodities markets in global hedge funds and investment banks. This is coupled with the academic research they have been conducting
in this area for decades in collaboration with some of the world’s most prestigious AI departments that have been folded into ChAI’s forecasting backbone.

By facilitating timely access to commodity prices and providing forecasts and drivers for price changes, ChAI helps limit extreme food price volatility. The company’s intuitive web application enables users to benefit from impartial materials and energy price predictions made by applying AI to all of the data that matters, from satellite imagery to the China 300 Index.” ChAI also enables Procurement Specialists to secure more margin and gives Treasury Experts across multiple organisations crucial insight to improve hedging.

The first commodity forecasts to be added to the ChAI platform will be based on Platts polypropylene benchmark prices and include two different grades of Polypropylene (Homo Inj US Domestic Dlvd Railcar and Homo Inj FOB NWE), a vital polymer across a range of industries such as Fast Moving Consumer Goods ‘FMCG’. After which we will be rolling out other plastic and steel commodities in the near future. To learn about the other benchmark prices that will be arriving on the ChAI platform in the near future, get in touch via our website.

"We are very excited to partner with one of the leading price reporting agencies and create additional value for our customers by providing price indices that are extremely popular with our client base and vital in delivering key insight in an increasingly volatile and important global market. This agreement marks a significant step in our journey toward democratizing access to tools that have previously only been available to well-resourced speculators and financial institutions, to now include those in the physical supply chains."

Tristan Fletcher, CEO at ChAI

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ChAI provides price forecasts and market intelligence for a range of commodities across Metals, Energies, Plastics and Agricultural.

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