HOUSTON (ICIS)--US October butadiene (BD) contracts fully settled up 10 cents/lb ($220/tonne), sources said on Friday.
The increase puts contracts at 52 cents/lb on an FOB (free on board) basis.
After the first nomination was heard at 57 cents/lb, sources said three other producers separately nominated October pricing at 52 cents/lb.
The initial producer nomination was then re-nominated at 52 cents/lb, where the market settled.
Buyers had been pushing for a smaller increase, of around 5-8 cents/lb, but tight supply remained throughout September.
Sources said Shell Chemical has not fully restarted its Deer Park BD unit in Texas, but is able to sell material in October.
Additionally, all three other major US BD producers experienced outages and lost production in September.
Import availability was limited and higher-priced than US BD, which prevented it from alleviating any tightness in the US.
Sources said the production lost in September outweighed the amount of consumption lost.
Additionally, pressure for higher US BD contracts was felt as global spot prices spiked in the first half of September on tight supply and strong demand.
Domestic BD demand is expected to be steady to up slightly in October, before hitting some seasonal lulls in November and December.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.