10 January 2006 21:06 [Source: ICIS news]
HOUSTON (ICIS news)--The January US butadiene (BD) contract remained unsettled due to ongoing customer resistance, despite initial agreements for a 1 cent/pound decrease that would put prices at 49 cents/pound ($1,079/tonne) free on board (FOB) USG (US Gulf), market sources said on Tuesday.
With supply growing amid weak demand and BD spot prices in the mid-40s cents/pound FOB USG, a major Houston-based customer pressed for a 2 cents/pound January price cut. The BD December contract was at 50 cents (Euro.41)/pound FOB USG.
Market players pointed out that the last time BD was settled at a split was in July, 2000, when the contract settled at 25-26 cents/pound FOB USG.
A few customers expressed concern with the nearly 10 cents/pound differential between BD prices in the ?xml:namespace>
The first quarter European butadiene (BD) contract was agreed at Euro770/tonne, a reduction of Euro45/tonne from the fourth quarter’s Euro815/tonne. BD spot prices in
Butadiene is primarily used as a raw material in styrene butadiene rubber.
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