26 October 2012 23:28 [Source: ICIS news]
HOUSTON (ICIS)--The final two US butadiene (BD) producers have nominated rollovers for the November contract price, market sources said on Friday.
It is expected the contract price will settle at a rollover as each of the four producers that participate in the contract negotiation process have offered rollovers from their October contract prices.
Three producers have nominated rollovers at 83 cents/lb ($1,830/tonne, €1,409/tonne) and one producer nominated 90 cents/lb.
The three producers with nominated contract prices at 83 cents/lb account for about 82% of US capacity.
Market sources said the rollover nominations were a result of the weak market in which producers are primarily fulfilling contractual obligations.
The European BD monthly contract price for November settled down by 3.0%, reflecting soft market conditions both in Europe and in the other regions of the world.
Typically, nominations are offered for the US BD contract ahead of the beginning of the month, and then a settlement is reached.
North American BD producers include ExxonMobil, LyondellBasell, Shell and TPC Group.
North American buyers include Ashland, INVISTA, LANXESS, Michelin and Negromex.
($1 = €0.77)
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