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)
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