YNCC Nov BD contract settles over $1,000/t lower

24 November 2008 03:16  [Source: ICIS news]

SINGAPORE (ICIS news) – South Korea’s Yeochun Naphtha Cracking Center (YNCC) has settled its November butadiene (BD) contract at $1,930/tonne on a delivered pipeline basis, down a hefty $1,040/tonne from October, a company source said on Monday.

 

Rising butadiene inventories and shrinking demand have fuelled the downward price spiral. Derivative synthetic rubber and plastics producers slashed operating rates amid the global downturn.

 

Spot BD prices have plummeted to $700-750/tonne CFR (cost and freight) northeast (NE) Asia, down a whopping $2,625/tonne from its July peak of $3,350/tonne, according to global chemical market intelligence service, ICIS pricing.

 

YNCC, the country’s largest olefins producer, had settled its October contract at $2,970/tonne pipeline delivered.

 

The YNCC contract formula is linked to Asia spot pricing.

 

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By: Helen Yan
+65 6780 4359

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