US Q4 butanediol contracts settle slightly weaker

29 October 2013 19:19  [Source: ICIS news]

US Q4 butanediol (BDO) contracts settle slightly weakerHOUSTON (ICIS)--US Q4 butanediol (BDO) contract negotiations have concluded, with the overwhelming result being a rollover for large-volume accounts and a slight discount for small-volume accounts, market sources said on Tuesday.

Q4 BDO contracts were assessed by ICIS in the range of 125-132 cents/lb ($2,756-2,910/tonne, €1,984-2,095/tonne), steady on the low end but 5 cents/lb lower on the high end.

The settlements were very similar for all producers, regardless of raw materials used for the manufacture of BDO.

Large-volume buyers have been satisfied with a rollover because they already get a competitive price that closes the door to imports from China or other regions.

Discounts were granted only to buyers on the high end of the range, those who could be inclined to import material or switch suppliers.

Imports from other regions have not been significant so far in the US, but producers are keeping a watchful eye on Asian production of BDO and its implications for western markets.

New production in China could have an impact on the US by the first quarter of 2014, when plants are expected to be fully operational, a source said.

BDO demand may get slightly weaker through year's end due to seasonal patterns. December sales are historically softer for most commodities in the US.

($1 = €0.72)

By: George Martin
+1 713 525 2653

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