28 January 2013 22:38 [Source: ICIS news]
HOUSTON (ICIS)--The US February butadiene (BD) contract price rolled over from January, sources confirmed on Monday, because of a weak downstream styrene butadiene rubber (SBR) market.
Most US BD producers have a February contract price of 76 cents/lb ($1,675/tonne, €1,240/tonne), while a fourth producer, which accounts for about 18% of the US production capacity, has a contract price of 83 cents/lb.
US BD contracts normally settle at the end of the month for the following month.
This is the third consecutive month that BD has seen contract prices at this level.
SBR is used primarily to produce tyres and the US tyre market has been weak, with many tyre producers holding large inventories of finished goods and raw materials. The SBR market has seen lacklustre demand for many months.
BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include Ashland, INVISTA, LANXESS, Michelin and Negromex.
($1 = €0.74)
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