10 July 2012 22:23 [Source: ICIS news]
HOUST0N (ICIS)--A major supplier said on Tuesday it settled some initial third-quarter butanediol (BDO) contracts at a rollover to declines of 5.00 cents/lb ($110/tonne, €89/tonne) during the week.
The supplier said it has settled with two customers at declines of 5.00 cents/lb, and a large customer at a rollover.
The producer said it expects to be fully settled with all of its third quarter contracts before August.
Trade sources have been pointing to a price drop for the third quarter, based on declining feedstock prices in the previous two months, and weaker Asian BDO spot prices.
One major consumer said it believed suppliers may look at price declines of 3.00-5.00 cents/lb and would likely try to settle contracts soon to avoid further erosion in feedstock costs.
Another consumer said it expected contract declines of up to 10.00 cents/lb.
Suppliers, however, have said they are sold out and cannot meet additional demand.
Despite this, no producers have come out with any price initiatives for the third quarter.
Trade participants have said the summer vacation season has slowed negotiations in North America, with many trade participants out of the market.
Second quarter BDO contracts were settled at 154.50-172.50 cents/lb, down 5.50 cents/lb from the first quarter.
Major North American BDO producers include BASF, LyondellBasell and Ashland.
($1 = €0.81)
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