26 April 2013 21:46 [Source: ICIS news]
HOUSTON (ICIS)--The US May contract price for butadiene (BD) among the three companies that account for about 85% of the market is expected to settle at 79-80 cents/lb ($1,742-1,764/tonne, €1,341-1,358/tonne), or 4-5 cents below the current contract price of 84 cents/lb, several market sources said on Friday.
The market is waiting for one more producer to nominate its price, but it does not look like that's going to happen before the close of business on Friday, sources said.
Three of the four US BD producers have put forth their nominations for the May contract price. Two of the three producers that account for about 85% of the market have nominated prices of 79 cents/lb and 81 cents/lb. One producer, which accounts for about 15% of the market, has nominated a price of to 85 cents/lb, down 2 cents from its April contract price of 87 cents/lb.
"I think it'll split the difference between the two lower nominations and settle at 80 cents/lb," said one market source, referring to the contract price that is being negotiated between the three producers who make up the bulk of the market.
Another market source said it thinks the third and final producer, who has yet to nominate, will match the 79 cents/lb nomination, and that is where the market will settle.
"My range was down between 3-5 cents/lb, so I'll be happy with either one," said a buyer.
BD end users have been carping since the April contract settled at rollover that the price was too high. For the past three weeks, many market players have been arguing that the price had to come down, given the fact that cheap BD from Asia has been coming into the US market and demand from the all-important tyre sector is down across the globe.
($1 = €0.77)
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