HOUSTON (ICIS)--The first nomination for February US butadiene (BD) was for an increase of 17%, sources confirmed on Tuesday.Butadiene (BD) is a raw material used in the production of tyres.
The nominated 7 cent/lb ($154/tonne) increase would put contracts at 48 cents/lb if fully accepted.
The nomination comes from a US producer that nominated its January contracts at 42 cents/lb, before the market settled at 41 cents/lb.
Sources said they expected around 3-5 cents/lb of the nominated February increase is likely to find traction.
While there is increased upward pressure from the Asian market, supply in the US remains healthy, sources said.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.