HOUSTON (ICIS)--A second nomination for US February butadiene (BD) contracts called for an increase of 9.8%, sources said on Tuesday.Butadiene (BD) is a raw material used in the production of tyres.
The nominated 4 cent/lb ($88/tonne) increase would put contracts at 45 cents/lb, if fully accepted.
The nomination comes from a producer that nominated January contracts at 41 cents/lb, and settled at 41 cents/lb.
The first nomination for US February BD was at 48 cents/lb, an increase of 7 cents/lb.
Sources said they are expecting an increase of around 3-5 cents/lb, given some upward pressure from Asia and rebounding domestic demand.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.