05 April 2011 04:43 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS)--Asia butadiene (BD) spot prices are likely to rise further in April as a global supply crunch amid Japan earthquake and Middle East unrest spurs sellers to raise offers to $3,000/tonne (€2,100/tonne), industry sources said on Tuesday.
“There is still room for the BD price to go up further above $3,000/tonne if supply remains tight and demand from the downstream synthetic rubber makers remains strong,” a Korean trader said.
BD spot prices were at $2,750-2,800/tonne CFR (cost and freight) NE (northeast) ?xml:namespace>
BD spot prices have increased by $700/tonne since early January this year as strong demand from the downstream synthetic rubber market had bolstered prices.
In early January 2011, BD spot prices hovered around $2,050/tonne CFR NE Asia, ICIS data showed. (please see table below)
Strong demand from the downstream synthetic rubber makers and a global BD supply crunch in the wake of the March 11 earthquake in
April shipments of BD exports from
Further adding upward pressure on the BD price in Asia was a spate of production issues in Europe and the
Technical issues, ongoing and upcoming cracker turnarounds in Europe have significantly reduced BD supply and lifted BD spot prices in Europe to $3,000/tonne FOB (free on board) ARA (Amsterdam, Rotterdam and Antwerp) in the week ended 1 April.
With freight costs from Europe to
BD production in the
April BD spot prices in the US jumped up by 9 cents/lb to 135-145 cents/lb in the week ended 1 April, ICIS data showed.
“The arbitrage window to Asia has closed which means that BD prices in
($1 = €0.70)
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