US Sep butadiene settles up 8 cents/lb at record

05 September 2008 18:33  [Source: ICIS news]

HOUSTON (ICIS news)--US Gulf butadiene contracts settled 8 cents higher at $1.18/lb ($2,601/tonne), market sources said on Friday.

Producers had earlier nominated increases of 10-15 cents/lb, but one of them subsequently lowered its offer amid easing energy values. The lowest nomination typically sets the final settlement.

The September contract price marks the ninth consecutive month in which a record settlement has been reached, according to data from global chemical market intelligence service ICIS pricing.

The US Gulf market has seen a chronic shortage of butadiene this year because cracker operators have lightened their feedstocks as much as possible in response to the sharper run-up in crude oil in the first half of the year compared with natural gas.

Olefins market sentiment toward ethylene and propylene has swung to the downside since crude oil reversed direction in July, leaving butadiene to continue its steep ascent on its own.

($1=€0.70)

(Additional reporting by Gabriela Wheeler)

For more on butadiene visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stephen Burns
+1 713 525 2653

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly