29 November 2011 16:45 [Source: ICIS news]
HOUSTON (ICIS)--US butadiene (BD) prices could drop to 98 cents/lb ($2,161/tonne, €1,621/tonne) in December, based on the final contract nomination put forward for next month, market sources said on Tuesday.
According to sources, a producer late on Monday proposed a 17 cent/lb reduction for December, outstripping three other suppliers which had nominated reductions of 10 and 15 cents/lb in recent days.
It was still unclear if the three suppliers would match the 17 cent/lb drop, a buyer said.
Four US producers participate in the BD settlement process.
BD contracts in November settled at $1.15/lb, down by 25 cents/lb from October.
The expected reduction for December is the fourth in as many months. The downtrend, which has pushed BD prices down by 35% since September, stems from ample supply and weakening demand.
US BD producers include ExxonMobil, INEOS, LyondellBasell, Shell and TPC Group.
($1 = €0.75)
For more on butadiene, visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|