US March BD contract settles up 8 cents/lb at 84 cents/lb

26 February 2013 16:10  [Source: ICIS news]

March US BD contract settled at 84c/lb, up 8c/lbHOUSTON (ICIS)--The March contract for US butadiene (BD) has settled at 84 cents/lb ($1,852/tonne, €1,408/tonne) among the three producers that account for more than 80% of US capacity, market sources said on Tuesday.

The March contract price is up 8 cents/lb, or more than 10%, from the February contract price of 76 cents/lb.

Two of the three producers had nominated price increases of 8 cents/lb and 10 cents/lb, respectively. Market sources confirmed on Tuesday that a third producer had agreed to the 8 cents/lb price hike, and the other producer brought its proposed price hike down from 10 cents/lb to 8 cents/lb.

A fourth supplier, which accounts for around 18% of US capacity and usually does not settle with the rest of the market, had nominated a price rise of 3 cents to 86 cents/lb. Confirmation of that settlement was unavailable.

One market source said that the price rise for March is being pushed by tight supply rather than greater demand, as well as moderate activity in the spot market.

Another market source said that long term he didn’t see much upward pressure on BD prices because of softness in Asia and concerns about margins on rubber and tyre prices.

As previously reported, sales of tyres used in new vehicles fell 16% in Europe and 2% in North America in December, while sales of replacement tyres dropped 7% in Europe and 8% in North America.

BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include Ashland, Invista, LANXESS, Michelin and Negromex.

($1 = €0.76)

Reporting by Mark Yost


Author: ICIS staff



AddThis Social Bookmark Button

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.

Printer Friendly

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