US Q4 BDO contracts settle at drop of 2 cents/lb

23 October 2012 23:19  [Source: ICIS news]

HOUSTON (ICIS)--Fourth-quarter contract negotiations for US butanediol (BDO) markets resulted in a settlement assessed at 2 cents/lb under third-quarter figures, according to market input received on Tuesday.

Settlements have varied within a range of minus 4 cents/lb ($88/tonne, €68/tonne) to flat to third-quarter levels.

The settlements have been influenced largely by contract volumes, but other considerations could have played a part, sources said.

There were market participants that did not get involved in the settlement discussions, preferring to settle negotiations following a formula mutually agreed by seller and buyer.

After analysing the data received, ICIS assessment of fourth-quarter contract negotiations is a discount of 2 cents/lb from fourth-quarter values, putting the range at 147-165 cents/lb.

Although the market is tighter after recent turnarounds, product availability remains adequate for all market segments.

October demand has been strong, market participants said, but November orders look a little slower, so far.

BDO producers in the US include BASF, Ashland and LyondellBasell.

($1 = €0.77)


By: George Martin
+1 713 525 2653



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