24 May 2010 21:45 [Source: ICIS news]
HOUSTON (ICIS news)--A US butadiene (BD) producer nominated a June contract hike of 5 cents/lb ($110/tonne or €88/tonne), two cents lower than a competitor’s nomination last week, market sources said on Monday.
The nomination, which would push US BD contract prices to 94 cents/lb, was the same increment as May contract settlements, according to data from global chemical market intelligence service ICIS pricing. It would also be the sixth consecutive BD contract price increase.
US BD contracts usually settle at the lowest price nominated by the four main US producers. The remaining two suppliers were expected to step out with their initiatives by 28 May.
Buyers said they expected imported BD from Asia, Europe and Brazil to bring prices down, but added that recent shipments would not reach the market in time to influence June contract ideas.
"There’s a lot of product out there right now being imported, but people can’t get it unloaded yet,” a buyer said.
US BD supply had loosened as imports hit the market in the second quarter after being extremely tight during the beginning of the year, sources said.
US BD producers include ExxonMobil, INEOS, LyondellBasell, Shell and TPC Group. Buyers include Invista, International Specialty Products (ISP), Lanxess, Michelin and Negromex.
($1 = €0.80)
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