29 November 2012 23:51 [Source: ICIS news]
HOUSTON (ICIS)--A butadiene (BD) producer has lowered its US December nomination to 76 cents/lb ($168/tonne, €1290/tonne), sources said on Thursday, bringing three of the four producers to the same price drop of 7 cents/lb.
A fourth producer nominated a rollover of 90 cents/lb.
Whether that producer will change its nomination remains uncertain.
However, it does look certain that the majority of the US BD contracts for December will move for the first time since September.
The three producers, which make up about 82% of US production capacity among those that participate in contract negotiations, have had a contract price of 83 cents/lb since the September contract.
The producer with the rollover has also had the same contract price since its September contract price – 90 cents/lb.
The initial December nominations had one producer with a rollover, two producers at a decrease of 5 cents/lb and the fourth producer at a reduction of 7 cents/lb.
On Wednesday, one of the producers that had nominated a reduction of 5 cents/lb moved its nomination down to meet the lower amount.
Typically, nominations are offered for the US BD contract ahead of the beginning of the month and then a settlement is reached.
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)
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