29 November 2012 00:11 [Source: ICIS news]
HOUSTON (ICIS)--The last of four butadiene (BD) producers that take part in the US contract negotiations has submitted its nomination for its December contract at a reduction of 7 cents/lb ($154/tonne, €119/tonne) to 76 cents/lb, market sources confirmed late on Wednesday.
One of the producers with the earlier nomination has now met the 7 cent/lb reduction, bringing its nomination to 76 cents/lb.
The other producer cannot be reached to see if it was going to match the 7 cent/lb drop.
The first of the four nominations was submitted by the producer which had a November contract price of 90 cents/lb. It offered a rollover.
Whether that nomination will be trimmed is uncertain.
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.
With the nominations now in and the contract price not settled, buyers and sellers are exchanging ideas.
Buyers are seeking to get some sort of consensus among the three producers with the lower-priced nominations and some downward movement in price from the producer with the rollover nomination.
Producers will attempt to hold firm on their prices.
It is expected that the settlement will be announced on Thursday.
The contract prices for September, October and November have been the same – three producers at 83 cents/lb and one producer at 90 cents/lb.
The three lower-priced nominations come from three producers which make up about 82% of the production capacity in the US.
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 soft supply and demand fundamentals.
Producers of BD that participate in the US contract negotiation process include ExxonMobil, 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