16 October 2012 23:37 [Source: ICIS news]
HOUSTON (ICIS)--Negotiations of Q4 contracts for US butanediol (BDO) markets continued this week with mixed results, but mostly showing rollovers, market participants said on Tuesday.
A week ago, an initial settlement at 4 cents/lb ($88/tonne, €68/tonne) below the Q3 settlement appeared to be a precursor of things to come, but successive settlements suggested otherwise.
At least two US producers have reported Q4 settlements at a rollover of Q3 values.
A third US producer consulted has not returned calls asking for info about its BDO settlements.
A fourth US producer is not active in the merchant BDO market, having only captive production for spandex, sources said.
Producers cited a tighter BDO market that has no spare material as supporting evidence for a rollover in Q4 contract settlements. Recent maintenance turnarounds have been the reason for diminished BDO supply.
Demand from the polybutylene terephthalate (PBT) market was said to continue strong, but other segments such as thermoplastic polyurethanes (TPU) are showing mixed signals, sources said.
Although the market is tighter after recent turnarounds, product availability seems to be adequate for all market segments.
($1 = €0.77)
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