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

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index