US May BD contract initially nominated at rollover

22 April 2014 23:09  [Source: ICIS news]

HOUSTON (ICIS)--US butadiene (BD) contracts for May were initially nominated at a rollover by one producer, sources said on Tuesday.

The US producer that had settled its April contracts at 78 cents/lb ($1,720/tonne) nominated that price for its May settlements, sources said.

No nominations were heard from the other three US producers who had separately settled their April contracts at 68 cents/lb.

Buyers said that the initial May nomination was in line with expectations that May contract pricing would not be significantly different from April.

Domestic supply remains tight, with TPC Group on force majeure and LyondellBasell on 80% allocation. LyondellBasell originally had declared a 75% allocation but has since raised that percentage.

Market sources said that the uncertainty of whether TPC would be back up in May would keep contract prices for that month from falling. However, buyers would keep any increases at a minimum, given that demand is not increasing.

Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC.

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By: Tracy Dang
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