US Q3 butanediol contracts settle in mixed fashion

29 July 2014 21:11 Source:ICIS News

HOUSTON (ICIS)--US butanediol (BDO) negotiations to settle third-quarter (Q3) contracts are complete for most US suppliers and the results have been mostly at a premium, but with some discounts also seen for a few contracts, sellers and buyers confirmed on Tuesday.

ICIS assessed contracts in the same mixed fashion, by widening the range relative to second-quarter levels.

Prices were assessed 3 cents/lb lower in the low end and 4 cents/lb higher on the high end of the range for a settlement at 125-137 cents/lb.

Buyers have painted a similar picture of mixed results for their contracts with some closing at a discount, some flat, and some at a premium.

The negotiations for BDO and its derivatives were affected by a force majeure declared by INVISTA.

The company implemented a sales allocation to account for the loss of ability to maintain full delivery rates of BDO and its derivatives.

Suppliers said that inventories are thin ahead of the hurricane season and have been allocating material in some cases, while others practiced sales control, the latter defined as limiting people to the volumes stipulated in their contracts.

The main BDO producers in the US are BASF, INVISTA, Ashland, and Lyondell Chemical Company.

By George Martin