24 April 2012 22:50 [Source: ICIS news]
HOUSTON (ICIS)--Second-quarter North American butandiol (BDO) contracts fully settled higher by 5.50 cents/lb ($121/tonne, €92/tonne) on average, market participants said on Tuesday.
The increase took second-quarter prices to 154.50-172.50 cents/lb, but was below producer price increase nominations of 7-10 cents/lb.
The increase was attributed to recent increases in feedstock prices, specifically propylene, reduced inventories and strong demand as Asian market participants returned to the market after the Lunar New Year holidays
The full settlements come a week after initial settlements were heard.
Consumers said suppliers did not achieve the full amount they had sought because of the good supply availability and stability in the downstream BDO derivative market.
Some buyers has also said the 7-10 cent/lb nominations were too aggressive, but acknowledged that demand in some downstream BDO sectors such as the automotive market was improving.
Although some market participants were looking ahead to the third-quarter already, most have said it was too early to discuss any positions.
Major North American BDO producers include BASF, LyondellBasell and Ashland.
($1 = €0.76)
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