24 November 2010 22:16 [Source: ICIS news]
HOUSTON (ICIS)--A US butadiene (BD) producer on Wednesday nominated an increase of 2.00 cents/lb ($44/tonne, €33/tonne) for December, undercutting initiatives by two other suppliers earlier in the week.
The latest nomination would put BD in December at 86.00 cents/lb, as US contracts usually settle at the lowest price nominated by the four main US producers.
Two other producers proposed increases of 3.00 and 4.00 cent/lb, while the remaining supplier was expected to make its nomination after the Thanksgiving holiday.
Market participants had expected BD contracts to roll over or settle slightly higher in December as a result of tighter supply in the US and Europe and higher prices in Asia.
A contract increase in December would snap a three-month downtrend in the US market.
US BD contracts fell by 2.00 cents/lb to 84.00 cents/lb in November. That followed a 6.00 cent/lb reduction in October, while September contracts were assessed 2.00 cents/lb lower.
US BD producers include ExxonMobil, INEOS, LyondellBasell, Shell and TPC Group. Buyers include Invista, International Specialty Products (ISP), Lanxess, Michelin and Negromex.
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