28 March 2011 19:24 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--US butadiene (BD) prices will remain on an uptrend and another contract increase is expected in May, following the substantial increase taking shape for April, a buyer said on Monday.
US producers are pushing for increases of 17 cents/lb ($375/tonne, €266/tonne) and 21 cents/lb, which are expected to push at least some contracts above the $1.22/lb record from October 2008.
The March contract settled at $1.04/lb.
SBR demand in the first quarter has increased by 20% from a year earlier, said a producer in North America on the sidelines of the International Petrochemical Conference (IPC) in San Antonio.
“There will be another [BD] increase in May,” the source said, pointing to the lack of supply and the latest spot price indications.
BD spot prices in the US are mostly notional because no material is available, the source said, estimating that spot material was now carrying a premium of at least 20 cents/lb over the April contract.
Hosted by the National Petroleum Refiners Association (NPRA), the IPC run through Tuesday.
($1 = €0.71)
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