26 August 2011 22:24 [Source: ICIS news]
HOUSTON (ICIS)--US butadiene (BD) contracts are expected to settle flat or down in September after a producer on Friday nominated a decrease of 5 cents/lb ($110/tonne, €77/tonne) for next month.
BD settled in August at $1.75/lb for most of the US market, while some contracts settled at $1.86/lb because one of the main US producers did not match the price of the other suppliers.
The same producer, which owns around 15% of US BD capacity, nominated a decrease of 6 cents/lb for September, an initiative that would put its contracts at $1.80/lb next month.
Two other producers initially nominated a rollover at $1.75/lb. However, at least one of those producers is now likely to match the $1.70/lb nomination
The initiatives for September would keep US contracts mostly in line with spot prices, which have weakened in August because of growing softness in other regions.
The monthly BD contract in Europe for September settled this week at €2,400/tonne FD (free delivered) NWE (northwest Europe), down by €125/tonne from August.
The reduction is the first fall to be registered in the European BD monthly contract price (MCP) since the start of 2011.
($1 = €0.70)
For more on BD visit ICIS chemical intelligence
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