25 June 2013 20:34 [Source: ICIS news]
HOUSTON (ICIS)--The July US butadiene (BD) contract price among the three producers that account for about 85% of the market is consolidating around 66 cents/lb ($1,455/tonne, €1,106/tonne), marking an 8 cent/lb drop and falling in line with expectations, market sources said on Tuesday.
One producer has nominated a July contract price of 66 cents/lb and "we expect that the others will consolidate around that", one source said. The June contract price for BD is 74 cents/lb and sources have said that they expect it to drop to about 60 cents/lb by the August contract.
The current spot price for US BD is about 60 cents/lb for June delivery.
A fourth producer, which accounts for about 15% of the market, has nominated a July contract price of 73 cents/lb, down by 8 cents from its June contract price of 81 cents/lb, sources said.
US BD producers are expected to settle the July contract in the next week, sources said.
Earlier in the year, US BD had been expected to rise slowly to above $1/lb from 76 cents/lb. It rose to 84 cents/lb for March and April, but then dropped steadily on weakness in the replacement-tyre market. The contract price for US BD dropped to 79 cents/lb in May and 74 cents/lb in June.
A year ago, the contract price for US BD was $1.07/lb.
($1 = €0.76)
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