Market sources in the US informed SSESSMENTS.COM that butadiene producers in the country were heard nominating May butadiene contract prices lower compared to April contract prices. According to them, Shell, LyondellBasell, and TPC Group were heard to be nominating at 20 cents/pound, 4.5 cents lower than their April contracts. Meanwhile, ExxonMobil’s nomination was heard at 2.5 cents lower at 22 cents/pound.
The sources that the nomination matched market expectations of a price decline. If confirmed at settlement, the nominations would put domestic butadiene contract prices down to their lowest in 18 years, since April 26, 2002, when US butadiene contract prices were recorded at 18 cents/pound. Spot US butadiene stood at 13.75 cents/pound CIF USG on Friday.
