EPCA ’08: October US BD likely to rise 4 cents/lb

29 September 2008 15:54  [Source: ICIS news]

MONTE CARLO (ICIS news)--US butadiene (BD) contracts will likely jump by 4 cents/lb ($88/tonne) in October based on nominations put forward for next month, market sources said on Monday.

 

US BD nominations were heard at plus 4 and 5 cents/lb, with three producers nominating plus 4 and one producer plus 5 cents/lb, sources said on the sidelines of the European Petrochemical Association (EPCA) meeting.

  

US BD contracts usually settle at the lowest nomination put forward by producers.

 

Contracts in September settled at $1.18/lb ($2,601/tonne), up by 8 cents/lb compared with August, according to global chemical market intelligence service ICIS pricing.

 

US BD supply has been restricted for nearly a year due mainly to feedstock constraints.

 

However, buyers at EPCA said the market was likely to lengthen in the fourth quarter due to disruptions on the consumer side caused by Hurricane Ike.

 

One source said 20% of US buyers were shutdown in the aftermath of Ike, while another source said up to half of US BD buyers were affected by the storm.

 

The four-day conference ends on Tuesday.

 

To discuss issues facing the chemicals industry visit ICIS connect 

 

 

By: William Lemos
+1 713 525 2653

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