02 October 2011 09:36 [Source: ICIS news]
BERLIN (ICIS)--The drop in US butadiene (BD) prices in October provided much-needed relief for the downstream market, a buyer said on Sunday, adding that prices were likely to be flat or fall again next month.
The November contract could shed another 5 cents/lb ($110/tonne, €81/tonne), but it is still too early to call a number for next month, the buyer said on the sidelines of the 45th annual European Petrochemical Association (EPCA).
“I don’t see prices rebounding at all,” the source said.
US BD contracts dropped by 30 cents/lb for October, pressured by weakening demand and a sharp decline in global BD spot prices in recent weeks.
The drop for October was agreed last week after a producer nominated a 30-cent/lb reduction, undercutting proposed reductions of 20, 15 and 25 cents/lb by three others suppliers.
The settlement, which represents an 18% slump from September, puts most October contracts in the ?xml:namespace>
The reduction in October was the second in as many months in the
BD contracts fell on average by 3.3% in September in the first drop for the monthly contract in 2011.
($1 = €0.75)
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