23 April 2010 23:55 [Source: ICIS news]
HOUSTON (ICIS news)--US butadiene (BD) contracts are poised to jump by 6% in May to 89 cents/lb ($1,962/tonne or €1,471/tonne) based on final nominations unveiled on Friday.
US BD contracts usually settle at the lowest price nominated by the four main US producers, which for May proposed increases of 5 cents/lb and 7 cents/lb.
Two US producers had nominated 7 cents/lb earlier this week. The remaining two producers came out on Friday with initiatives of 5 cents/lb and 7 cents/lb.
The increase is line with what buyers had predicted.
Consumers had expected BD to rise in May but not by the same magnitude as in the previous months, citing looser supply.
A steady flow of imported BD cargoes into North America has taken pressure off supply, a buyer said.
Imports from Asia alone would likely total 30,000 tonnes between April and June, the source said, adding that incremental parcels from Brazil and Europe were also helping to take pressure off US supply.
Tight supply has pushed BD contract prices up by 41% since January, including the expected increase in May.
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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