28 September 2012 18:00 [Source: ICIS news]
HOUSTON (ICIS)--The US October butadiene (BD) contract rolled over at 83 cents/lb ($1,830/tonne, €1,409/tonne) and 90 cents/lb, market sources said on Friday.
Three of the four producers settled their contracts at 83 cents/lb. They account for about 82% of the US capacity negotiated in the monthly contract.
Initially, one of those producers proposed an increase of 2 cents/lb before agreeing to the 83-cent/lb rollover.
A fourth producer settled its contract at a rollover from its September contract price of 90 cents/lb.
Market sources said the rollover was a result of the weak market in which producers are primarily fulfilling contract obligations.
The market is long, and sources said not much will change.
The European BD monthly contract price for October settled down by €10/tonne from September.
Typically, nominations are offered for the US BD contract ahead of the beginning of the month, and then a settlement is reached.
North American producers of BD that participate in the contract negotiation process include ExxonMobil, LyondellBasell, Shell and TPC Group. North American buyers include Ashland, INVISTA, LANXESS, Michelin and Negromex.
($1 = €0.77)
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