26 November 2013 16:48 [Source: ICIS news]
HOUSTON (ICIS)--The US December butadiene (BD) contract is expected to roll over or decline slightly, sources said on Tuesday.
A rollover was nominated by two of the three producers that settled their November contracts at 54 cents/lb ($1,190/tonne, €881/tonne) and the lone producer to settle at 56 cents/lb.
If a rollover is reached for December contracts, it would put the weighted average contract price at 54.36 cents/lb.
Buyers said the nominations were expected, as domestic demand is soft on seasonal factors and supply is balanced.
However, some buyers said a slight decline is in order, as the November increase of 8 cents/lb was largely fuelled by increased export demand.
That demand has tapered off, as supply concerns in Asia have eased. The weaker demand there has led to a spot price decline in Asia of $250-300/tonne in the past four weeks.
Producers said a decline in December is unlikely, however, as sales volumes probably will not improve even with slightly lower prices.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.
($1 = €0.74)
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