US BD confirmed settled at 94 cents/lb in July, up 2 cents

01 July 2010 20:30  [Source: ICIS news]

HOUSTON (ICIS news)--US butadiene (BD) contracts for July were confirmed settled at 94 cents/lb ($2,072/tonne, €1,699/tonne), rising by 2 cents/lb from June, market sources said on Thursday.

The increase came after two producers nominated increases of 5 cents/lb, while a third and fourth supplier sought increments of 4 and 2 cents/lb each.

US BD usually settles at the lowest price nominated by the four main US producers.

According to sources, the market had converged to the 2 cent/lb increase proposed by the fourth supplier.

The increase is the sixth consecutive monthly jump for BD, the price of which has risen by 49% since January, when contracts settled at 63.00 cents/lb.

The uptrend stemmed from tight supply from domestic producers, but buyers said the market was slowly becoming more balanced due to a sustained flow of imports.

BD contracts in August could settle flat if market conditions remain the same, a consumer said.

US BD producers include ExxonMobil, INEOS, LyondellBasell, Shell and TPC Group. Buyers include Invista, International Specialty Products (ISP), Lanxess, Michelin and Negromex.

($1 = €0.82)

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By: William Lemos
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