14 September 2010 22:49 [Source: ICIS news]
HOUSTON (ICIS)--US butanediol (BDO) producers have made fourth-quarter increase nominations of 5 cents/lb ($110/tonne, €86/tonne), sources said on Tuesday.
The hikes were led by the two producers who had earlier in the year called force majeures (FM) - BASF and LyondellBasell. Market sources said LyondellBasell has nominated increases of 10 cents/lb on BDO and derivatives with a 5 cent/lb temporary voluntary allowance (TVA).
BASF was understood to be the first producer out with the nominations, and International Specialty Products (ISP) has also sent out 5 cent/lb increases to customers.
Third-quarter prices spiked 14-15 cents/lb on the extreme supply shortages in the market and put the ICIS assessed price range at 121-142 cents/lb.
Supply remained tight after the FM announcements, a producer said to explain the fourth-quarter hikes. Demand has remained healthy, the producer added.
LyondellBasell would keep customers on 90% allocation until the end of the year, sources said.
At the same time, BASF has customers on sales control until further notice with agreements formed on a customer-by-customer basis, a source said.
BASF emerged from FM at its ?xml:namespace>
LyondellBasell lifted its FM at
($1 = €0.78)
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