Rollovers seen in initial US Q1 BDO contract settlements

14 January 2014 23:23  [Source: ICIS news]

HOUSTON (ICIS)--Negotiations for North America butanediol (BDO) contracts are initially producing rollovers, although this could still change, market sources said on Tuesday.

One large BDO buyer said he has received confirmation that all increase initiatives announced for Q1 have been cancelled, effectively stating that Q4 2013 prices are rolling over Q1 2014.

A buyer of tetrahydrofuran (THF), a BDO derivative, has also achieved a rollover in its talks with suppliers.

It remains to be seen if similar conditions are being extended to most BDO buyers.

Producers and main buyers have been wide apart in their positions this month, after the announcement of substantial increases from at least two of the domestic producers.

Nominated BDO increases were as high as 5 cents/lb, with some derivatives as high as 7 cents/lb.

Buyers have been seeking a small discount or a rollover, and strongly oppose price increases.

Negotiations continue and final settlement may still be a few days away.

Current US BDO contract prices are in the range of 125-132 cents/lb ($2,756-2,910/tonne), according to ICIS data.

The main BDO producers in the US are BASF, Invista, Ashland and LyondellBasell.

By: George Martin
+1 713 525 2653

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