22 February 2012 20:46 [Source: ICIS news]
HOUSTON (ICIS)--A US producer nominated a 25 cent/lb ($551/tonne, €413/tonne) increase in its March butadiene (BD) contract price, market sources said on Wednesday.
The 25 cent/lb ($551/tonne, €413/tonne) increase would move the producers’ contract price to $1.55/lb for March, as the same supplier split the market in February by refusing to settle with other producers at $1.18/lb.
The split settlement left around 85% of the US market in February at the lower contract price.
The outcome of the March BD settlement for February will depend on the nominations by three other suppliers that participate in the settlement process.
Sources said the 19% increase is likely based on supply tightness, as several US crackers are down for maintenance and more are expected to go down in the coming months.
Strong demand and high prices in Asia are also expected to lend strength to the nomination.
However, a buyer said domestic demand will not be enough to support the full amount of the nomination, especially given the February contract price gap between the nominating producer and the other three.
BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include Ashland, Invista, LANXESS, Michelin and Negromex.
($1 = €0.75)
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