BD prices to continue climbing - US TPC exec

11 August 2011 18:49  [Source: ICIS news]

HOUSTON (ICIS)--US TPC Group expects the price of butadiene (BD) to continue its upward trend through the rest of the year, the company said on Thursday.

The price of BD has risen by 105% for the year, up to about $1.76/lb (€2,716/tonne), said chief executive Mike McConnell, during the company’s second-quarter earnings call.

“BD pricing is historically volatile,” he said. “But the demand and supply factor are expected to support elevated pricing levels for the near term.”

The higher BD prices have not affected demand in any of the company’s segments, he added.

“We place the majority of butadiene into rubber and nylon markets, which have shown resilience to these price levels,” he said.  

The demand for butadiene derivative products, such as nylon and synthetic rubber, remain very strong, McConnell said.

“For example, synthetic rubber use in tyre production continues to be driven by global growth in auto builds, the strong market in replacement tyres and the penetration of higher performance tyres,” he said.

Higher prices for BD helped TPC post a 138% year-on-year increase in net income for the second quarter at $34.3m, up from $14.4m in the same quarter last year.

($1 = €0.70)

For more on BD visit ICIS chemical intelligence

By: Bobbie Clark
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