Buyer sees US Sept BD falling, seller sees hikes or rollover

08 August 2011 22:32  [Source: ICIS news]

HOUSTON (ICIS)--The US September contract for butadiene (BD) could rise or fall by 5 cents/lb ($110/tonne, €77/tonne), a buyer said on Monday, while a producer expected either a hike or a rollover.

“I think September will be within 5 cents/lb either way of August. Factors like a possible drop in demand moving away from the summer vacation season and production cuts when turnarounds begin in September are likely to offset one another,” a buyer said.

A producer said that while price gains in September could be limited to 5 cents/lb, prices are not likely to come off. The producer expected nothing less than a rollover.

“We expect styrene butadiene rubber [SBR] imports to decrease, and that will put more pressure on US SBR producers to fill domestic demand without relying on imported product,” the producer said.

BD is the major feedstock of SBR.

September will likely result in a split settlement. The August settlement split, with three producers agreed to $1.75/lb and the fourth producer agreed to $1.86/lb.

Major US BD producers include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include INVISTA, International Specialty Products (ISP), LANXESS, Michelin and Negromex.

($1 = €0.70)

For more on BD  visit ICIS chemical intelligence

By: Gene Lockard
1 713 525 2653

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