US January butadiene (BD) contracts settled at a rollover to a decrease, sources confirmed on Friday.
The January ICIS Contract Reference Price (CRP) settled at 50 cents/lb, down 0.75 cent/lb from December.
Three producers settled at separate rollovers, while one producer settled down by 3 cents/lb.
An overall decrease was anticipated by some participants amid sustained crude price weakness, ample availability of feedstock crude C4 (CC4) and seasonally lower demand paired with year-end de-stocking.
US BD Contracts (in cents/lb, separately issued)
Jan Nomination Dec Settlement Producer 1 50 50 Producer 2 50 50 Producer 3 50 53 Producer 4 50 50
January’s settlement follows two steep declines in December and November. The CRP is now down nearly 23 cents/lb from October.
Prices have fallen on the back of global price weakness and improving availability of CC4 in the US.
Declining crude prices, which have fallen about $30/bbl since early October, have pressured downstream markets.
Energy complex declines have narrowed the cost gap between ethane and heavier feedstocks such as propane, butane and naphtha, leading to heavier cracking and improved CC4 supplies.
Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.