31 August 2009 20:27 [Source: ICIS news]
HOUSTON (ICIS news)--After speculation of a possible rare split settlement, US butadiene (BD) September contracts settled at an increase of 5 cents/lb ($110/tonne or €77/tonne), buyers said on Monday.
US BD contracts usually settle at the lowest price put forward by the four main producers, but because of the wide 13-cent/lb spread in nominations, talk last week centred on a possible rare split settlement for September contracts.
US BD producer Shell nominated a September increase of 5 cents/lb, Texas Petrochemicals a 6-cent increase and ExxonMobil nominated a 15-cent/lb increase during the week. In the week ended on 21 August, LyondellBasell nominated a September increase of 18 cents/lb.
Buyers decried the proposed 15- and 18-cent/lb increases as too high, saying consumers would be unable to pass the cost increase downstream.
BD contracts for September settled at 65 cents/lb, up by 5 cents/lb from August, according to data from global chemical market intelligence service ICIS pricing.
US BD producers include Texas Petrochemicals (TPC), ExxonMobil, LyondellBasell, Shell and INEOS. Buyers include Michelin, Lanxess, Invista and Negromex.
($1 = €0.70)
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