US May BD nominations announced at fourth straight record high

29 April 2011 17:55  [Source: ICIS news]

HOUSTON (ICIS)--US butadiene (BD) producers nominated May contract prices at increases of 19-22 cents/lb, sources said Friday, potentially pushing prices to record highs for a fourth consecutive month.

Two producers nominated May contract prices of 141 cents/lb ($3,109/tonne, €2,083/tonne), a third producer nominated a price of 144 cents/lb and a fourth producer nominated a price of 145 cents/lb.

The US BD contract price for April is assessed by ICIS at 122-123 cents/lb FOB (free on board).

The biggest factor pushing BD prices up tight supply. Two US producers have put customers on allocation, and crude C4, a key BD feedstock, is short because of increased cracking of ethane in the US.

Demand for BD and BD derivatives remains strong, a buyer said.

Historically, the US BD contract was settled at the lowest of the four prices from the major US producers. However, starting in September 2010, split settlements have become the norm.

Since that time, all but two settlements have been split, breaking a pattern that had lasted for more than 10 years.

Major US BD producers include ExxonMobil, LyondellBasell, Shell and TPC Group.

Major US BD buyers include Invista, International Specialty Products (ISP), Lanxess, Michelin and Negromex.

($1 = €0.67)

To learn more about butadiene, visit ICIS chemical intelligence

By: John Dietrich
713-525-2600

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly