25 April 2012 21:09 [Source: ICIS news]
HOUSTON (ICIS)--The second US May butadiene contract nomination was heard in the market, buyers said on Wednesday, matching the drop of the first nomination.
Buyers said one of the four producers nominated a May contract price of $1.52/lb ($3,351/tonne, €2,547/tonne), down by 3 cents/lb from the April contract settlement of $1.55/lb.
Another US producer came out with a nomination of $1.59/lb, down from its April contract settlement of $1.62/lb.
US April BD contracts settled at $1.52-1.55/lb FOB, as assessed by ICIS.
The three-tiered April split was uncommon, with the highest settlement representing around 15% of the market, while the ICIS assessed range represented about 85% of the market.
A BD buyer said prices need to fall now to reduce the severity of the downside in the market and to avoid demand destruction.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.
Major US buyers include Ashland, Firestone Polymers, Invista, LANXESS, Michelin and Negromex.
($1 = €0.76)
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