25 April 2013 17:07 [Source: ICIS news]
HOUSTON (ICIS)--The May US butadiene (BD) contract price is expected to settle in the next few days down by 3-4 cents/lb ($66-88/tonne, €51-68/tonne), or about 80 cents/lb, sources said on Thursday.
The April contract price is currently 84 cents/lb among the three producers that account for about 85% of the market. A fourth producer, which accounts for about 15% of the market, has an April contract price of 87 cents/lb.
According to market sources, one of the three BD producers has nominated a May contract price of 81 cents/lb. The fourth producer has nominated a May contract price of 85 cents/lb.
"I'd rather see it down four cents per pound," said one market source. "That would be more realistic."
Other market sources scoffed at the idea of a May contract price decline of just 4 cents/lb. Some said they were doing spot deals at 78 cents/lb.
"I think it needs to come down by about 15 cents a pound," said one disgruntled market source. "But I also understand that's not going to happen in one month. I think minus seven [cents/lb] would be a reasonable drop for May."
BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group.
($1 = €0.77)
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