28 November 2012 18:55 [Source: ICIS news]
HOUSTON (ICIS)--Three US butadiene (BD) producers have offered their nominations for December contract prices, with one at a rollover and two at a reduction of 5 cents/lb ($110/tonne, €85/tonne), sources confirmed on Wednesday.
A fourth producer has not offered its nomination.
The BD producer of the nomination yet to be announced and the two producers which have offered lower contract prices account for about 82% of the US capacity of BD and last month settled their contract prices at 83 cents/lb.
The producer that has offered the rollover for December had a November contract price of 90 cents/lb.
There are four BD producers in the US that take part in the contract negotiation process.
If the rollover nomination becomes the settlement for that producer it will be the fourth consecutive month that it has had a contract price of 90 cents/lb.
The other three BD producers have had contract prices of 83 cents/lb for the months of September, October and November.
Some buyers said the decrease of 5 cents/lb should be the minimal reduction in contract price from November because of soft demand, ample inventories and the possibility of imported material competing for US buyers.
Market sources expect the fourth producer to offer its nomination later today or Thursday.
Several sources believe that if the fourth nomination comes in lower than what has been offered, two of the three other market participants will reduce their nominations to meet, while the third may reduce its nomination to some degree.
Typically, nominations are offered for the US BD contract ahead of the beginning of the month and then a settlement is reached.
An initial European BD monthly contract price for December has settled down by €40/tonne, reflecting the soft supply and demand fundamentals.
North American producers of BD that participate in the contract negotiation process include Exxon Mobil, LyondellBasell, Shell and TPC Group.
North American buyers include Ashland, INVISTA, LANXESS, Michelin and Negromex.
($1 = €0.77)
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.
|ICIS news FREE TRIAL|
|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|
Asian Chemical Connections