Fourth US June BD nomination at decline of 4 cents/lb

HOUSTON (ICIS)–US butadiene (BD) contract prices for June have been nominated by a fourth producer at a drop of 4 cents/lb, in line with separate nominations from the three other producers, market sources confirmed on Friday.

If accepted by buyers, the nominations would put June contract prices at 60 cents/lb ($1,323/tonne), 6.25% lower than in May.

Other individual nominations had emerged earlier in the week.

A slight decline for June contract prices after two months of sharper declines is in line with some market expectations. However, some sources said global softness could push the final settlement lower.

BD prices in Asia have been trending lower since February, which has kept downward pressure on prices in both the US and in Europe. Bearish sentiment continues in Europe despite some production issues, and the European market is not expected to settle its June BD contracts until next week.

If the Europe settlement is lower than expected, US contract prices could be pressured lower than the current nominations, one source said.

US BD contracts typically settle at the end of the month for pricing in the upcoming month.

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