US Ashland seeks 5 cent/lb Q3 hike in BDO, derivatives

18 June 2014 22:04 Source:ICIS News

HOUSTON (ICIS)--Ashland is seeking higher North American prices for butanediol (BDO) and other intermediates and specialty solvents, effective on 1 July or as contracts allow, the company said on Wednesday.

Prices for 1, 4 butanediol (BDO) and its downstream solvent derivatives will increase by 5 cents/lb ($110/tonne).

BDO contracts in North America are negotiated quarterly with buyers and negotiations for the third quarter will start in a few days.

Most North American producers have announced increases for Q3 contracts despite a recent decline in feedstock costs.

Buyers will point to upcoming new supply in North America and lower feedstock costs to fight the increase.

Second quarter North American BDO prices in 2014 settled up in the range of 128-133 cents/lb, according to ICIS data.

The main producers in North America are BASF, INVISTA, Ashland and LyondellBasell.

By George Martin