03 June 2011 22:40 [Source: ICIS news]
HOUSTON (ICIS)--The June US butadiene (BD) contract settled at a new high and at a record spread of 15 cents/lb ($331/tonne, €228/tonne), a buyer said on Friday.
Three producers agreed to settle at $1.50/lb, and the fourth producer settled at $1.65/lb.
Split settlements have become increasingly common in recent months. Still, the wide range of the split was unexpected, sources said.
“I wonder how buyers [of $1.65/lb BD] will take the news,” a trader said, adding that discounts off the $1.65/lb settlement might occur for some contract buyers to put them closer to the other producers’ settlement.
Domestic BD supply has been tight because of an ongoing turnaround that is scheduled to end in mid June. At least two US styrene butadiene rubber (SBR) producers shut production during the second half of May because of a lack of feedstock BD.
Major US BD producers include ExxonMobil, LyondellBasell, Shell and TPC Group.
($1 = €0.69)
For more on BD visit ICIS chemical intelligence
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