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(ICIS) -- US butadiene (BD) prices are
expected to fall on average by 3.3% in September, market sources said on
Wednesday, predicting the first drop for the monthly contract in 2011. The
reduction comes as three US suppliers settled at USD 1.70/lb (USD 3,748/tonne,
EUR 2,586/tonne) FOB (free on board) USG (US Gulf),while a fourth producer split
the market and settled at USD 1.75/lb, market sources said.
The settlements put the September contract at USD 1.7075/lb, which is
down from a weighted average of USD 1.7660/lb in August, when the market was
split at USD 1.75/lb and USD 1.86/lb.
The drop in September will snap a nine-month uptrend during which BD
contract prices more than doubled as a result of tight supply and firm demand.
US BD prices last dropped in November 2010, when contracts settled 2 cents/lb
lower at 84 cents/lb. The softening in the US market is in line with a downturn
in other regions.
mrcplast.com
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