UpdateEurope BD contract settles at a rollover €1,415/tonne

26 March 2013 10:02  [Source: ICIS news]

LONDON (ICIS)--Europe’s monthly April butadiene (BD) contract price (CP) has been agreed at a rollover €1,415/tonne ($1,814/tonne) reflecting soft demand but constrained supply, a major producer said on Tuesday.

A second producer said; "on the demand side, intrinsic demand has not progressed at all, and with spot at about CP, there is no reason to change.”

It added the Asian market was a “big uncertainty” but that there was no impact on Europe at the  moment. Asian prices have been sinking fast on weak derivative demand.

April contract prices in the US also recently rolled over from March.

Light feedstock cracking is expected to increase, according to some sources, and this will restrict the supply of crude C4 BD feedstock further.

The contract is settled on a free delivered (FD) northwest European (NWE) basis.

Three producers and two consumers have agreed the settlement. Confirmation from one producer and one consumer is pending.

($1 = €0.78)

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By: Nel Weddle
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