US May BD production falls 5.4% from April

27 June 2013 16:38  [Source: ICIS news]

HOUSTON (ICIS)--US butadiene (BD) production in May totalled 224m lbs (10,160 tonnes), down by 5.4% from 237m lbs in April, Jacobs Consultancy said on Tuesday.

BD daily production in May fell by 8.5% to 7.23m lbs from 7.9m lbs in April, the group said in its monthly Hodson Report.

US crackers operated at 82.9% of capacity in May, down 8.2% from 90.3% in March, according to the report. 

"The drop in the daily production rate of butadiene is primarily the result of the lower steam cracker operating rate, coupled with the slight increased usage of ethane in the May feedslate compared to last month," the report said. "The B/E (butadiene/ethylene) ratio in May calculates to be 5.39%, down slightly from the 5.41% ratio in April, again a result of the increased volume of ethane feed used."

US BD contracts in June declined by 5 cents to 74 cents/lb ($1,631/tonne, €1,256/tonne) among the three producers that account for about 15% of the market. The market sentiment for the July contract price that will be negotiated over the next week or so is that the monthly contract price will drop another 8 cents/lb.

($1 = €0.77)

Author: Mark Yost

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