The US butadiene contract price for July is likely to see a split settlement at 170-175 cents/lb, a market source said Thursday.
Of the four nominating producers, the most recent nominated an increase of 20 cents/lb, which would put the price at 170 cents/lb for July, matching another producer's nomination. Two other producers have nominations that would put the price at 175 cents/lb.
"We'll probably see a split," the source said.
Such a settlement would represent an increase over the June contract, which also settled at a split, at 150-165 cents/lb.
The source believed the settlement would be in line with current market conditions.
"I don't think it is high," the source said. "They get up close to the spot market."
Confirmation from producers on the final settlement was not immediately avaliable.
The most recent CP nomination was heard this week, with one producer seeking a 20-cent increase from the 150-cent/lb settlement in June. Last week, two nominations were seen, one calling for a 20-cent/lb increase over the 150-cent/lb settlement and another for a 25-cent/lb increase, also over 150-cent/lb settlement.
The first nomination was heard June 23, with the lone producer who had settled at 165 cents/lb for June seeking a 10-cent/lb hike.
Spot butadiene was heard done Thursday at 227 cents/lb CFR USG.
It was last assessed July 1 on either side of 215 cents/lb.
