In July 2008, Ineos announced its support for a monthly contract pricing mechanism for ethylene and propylene. As a major olefin buyer, Ineos has said that the quarterly pricing mechanism, which can lead to large corrections in the monomer price, is no longer acceptable to the company's derivative businesses nor their customers. The evolution of global oil prices and the unprecedented fall in global demand for ethylene and propylene derivatives currently has further highlighted the need for change, according to Ineos. 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. Ineos proposes to establish a monthly pricing mechanism effective from January 1, 2009 and reportedly continues to discuss this with suppliers.