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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