US June BD contract settles down 5 cents at 74 cents/lb

03 June 2013 15:41  [Source: ICIS news]

HOUSTON (ICIS)--The US June butadiene (BD) contract among the three producers that account for about 85% of the market has settled down by 5 cents/lb ($110/tonne, €85/tonne) at 74 cents/lb, sources said on Monday.

The fourth producer, which accounts for about 15% of  US BD, reportedly settled its June contract at 81 cents/lb.

US BD producers have been under siege from less-expensive imports of Asian-made styrene-butadiene-rubber (SBR), the downstream product that consumes about 75% of US-made BD. This has led US SBR producers to pressure US BD makers to drop their prices in line with Asia.

The entire SBR industry has been plagued by a worldwide slump in replacement tyres, which account for about 80% of tyre sales. Goodyear recently said that it sold 1m fewer tyres in the US in the first quarter of 2013 than a year ago.

US producers of BD include ExxonMobil, LyondellBasell, Shell and Texas Petrochemical.

($1 = €0.77)

By: Mark Yost
+1 713 525 2653

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