27 September 2013 21:56 [Source: ICIS news]
LONDON (ICIS)--October butadiene (BD) contract price discussions were under way this week, but progress was slow, discussions were tough, and there was no settlement by the close of business on Friday, market sources said.
“[No settlement] on BD yet. [I am] sensing a wait-and-see attitude with Asia hitting $1,600/tonne (€1,184/tonne),” a producer said refering to bullish price talk.
"I have the impression people are waiting for US developments before settling," a second producer said.
Sources had hoped for a timely settlement this month, but parties moved into a wait-and-see position, firstly to seek clarification on Asian spot numbers that were talked increasingly higher through the week and secondly to wait until all the October contract price nominations in the US had emerged.
In the US, three out of four nominations were out at between 2-6 cents/lb increases, according to European sources, which would put the US October BD contract price at around 46-50 cents/lb ($1,014-1,102/tonne, €750-815/tonne) delivered.
The general expectation amongst market observers in Europe was for an increase from September’s €775/tonne FD NWE settlement.
However, some sources said they could not shake off the feeling that caution was still needed, that they felt the price hikes in Asia could be short-lived and that structurally, the derivative demand picture had not changed, although planned turnarounds at the cracker level would help support the European market.
Sources expect a settlement early next week.
($1 = €0.74)
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