28 March 2011 00:09 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--US butadiene (BD) contracts will likely settle at different levels in April, market sources said on Sunday, predicting that one supplier will not meet the nominations put forward by three other producers.
One producer led with a nomination of plus 21 cents/lb ($463/tonne, €329/tonne), which would place April contracts at $1.25/lb. The March contract settled at $1.04/lb.
Meanwhile, the other three producers nominated increases of 17 cents/lb, which would put their April contracts at $1.21/lb.
The market will be split, but not by a 4 cents/lb spread, one source predicted, adding that the producer nominating 21 cents/lb would likely accept a smaller increase.
April contracts will likely be split at $1.21/lb and $1.23/lb, the source said on the sidelines of the International Petrochemical Conference (IPC) in San Antonio.
The possible split settlement for BD in April would be the fifth since September 2010.
Split settlements used to be rare in the US BD market.
Prior to last September, BD had settled at different levels only in July 2000, when the market was split between settlements of 25 cents/lb and 26 cents/lb.
A previous split settlement occurred in December 1994, when some contracts settled at 23 cents/lb and others at 24 cents/lb.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC opened on Sunday and closes on Tuesday.
($1 = €0.71)
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