US BDO producers nominate 5 cent/lb Q4 increases

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 Geismar, Louisiana, plant in the past few weeks and was running at full rates, sources said.

LyondellBasell lifted its FM at Channelview, Texas, in the second half of August.

Major US butanediol (BDO) suppliers include BASF, Invista, International Specialty Products (ISP) and LyondellBasell.

($1 = €0.78)

For more on BASF's Geismar, Louisiana plant, visit ICIS plants and projects
For more on BDO visit ICIS chemical intelligence
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By: Ryan Hickman
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