01 November 2013 16:15 [Source: ICIS news]
HOUSTON (ICIS)--US November butadiene (BD) contracts settled at a 17% increase on higher spot prices stemming from demand in Asia, sources confirmed on Friday.
Three major US BD products separately settled their November contracts at 54 cents/lb ($1,190/tonne, €881/tonne), up by 8 cents/lb from their separate October settlements of 46 cents/lb.
A fourth US BD producer settled its November contracts at 56 cents/lb, up from its October settlement of 49 cents/lb.
The split settlements put the weighted US November BD contract at 54.36 cents/lb, up from October’s average of 46.54 cents/lb.
Sources said that the increase stemmed from stronger demand from the Asian market for US BD exports.
“We understand that the export situation has allowed for some higher prices,” a buyer said. “But we’re not seeing continued strength in those exports.”
A producer said that the demand from Asia was also bolstered by tight supply in the US, giving prices further room to increase.
Market players said BD demand is steady to soft and is balanced with the ongoing supply tightness.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.
($1 = €0.74)
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