22 April 2010 17:48 [Source: ICIS news]
HOUSTON (ICIS news)--Two US butadiene (BD) producers nominated May contract increases of 7 cents/lb ($154/tonne, €115/tonne), but buyers on Thursday predicted a smaller increase as a result of looser BD supply.
US BD contracts in April settled at 84 cents/lb, up by 8 cents/lb from March, according to global chemical market intelligence service ICIS pricing.
“We are expecting an increase of around 5 cents/lb in May,” a consumer said, citing a steady inflow of BD cargoes into North America from Asia, Europe and ?xml:namespace>
Imports from Asia alone would likely total 30,000 tonnes between April and June, the source said, adding that incremental parcels from
The source also pointed to the May settlement of the monthly European BD contract, saying a 5 cent/lb increase in the
The European contract was agreed on Wednesday at €1,350/tonne ($1,800/tonne), flat with April on a FD (free delivered) NWE (northwest
However, BD spot prices in Asia have strengthened in the last four weeks, a factor that could help US producers make their case for higher prices, particularly since most of the BD imported by the US was sourced in that region.
BD prices in Asia were assessed at $2,040-2,100/tonne CFR (cost and freight)
BD spot prices in the
US BD contracts usually settle at the lowest price nominated by the four main
The remaining two suppliers were expected to step out with their initiatives by Friday.
US BD producers include ExxonMobil, INEOS, LyondellBasell, Shell and TPC Group. Buyers include Invista, International Specialty Products (ISP), Lanxess, Michelin and Negromex.
($1 = €0.75)
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