Brazilian butadiene contract prices could drop 17 cents/lb ($374/mt) for July following the US Gulf Coast contract movements, sources said Friday.
Brazil's butadiene contract price usually traces the US price movements with some days lag, a source at Braskem said.
"It's still early to affirm, but for July, we should have a similar price fall for butadiene for the Brazilian market," the source added.
The July US butadiene contract price settled for the month Wednesday down 17 cents ($374/mt) to a 90-98 cents/lb ($1,983-$2,159/mt) split settlement, several sources said.
TPC Group, Shell Chemical and LyondellBasell settled at 90 cents, while ExxonMobil settled at 98 cents, sources said.
Producer confirmation was not available.
In Brazil, June butadiene contract prices moved down $860/mt (39 cents/lb) to $2,350/mt FOB plant.
Butadiene demand in the Brazilian domestic market was described as healthy this week, while the new Braskem butadiene plant was still working at low rates since the company started the unit in the first week of June.
The new Brazilian butadiene plant in Trinufo, Rio Grande do Sul state, has the nameplate capacity of 100,000 mt/year and combined with the three plants that already existed in Brazil the total capacity was going to be 440,000 mt/year.
