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Markets :: Basic Chemicals :: Petrochemicals :: Butadiene

Tight Supply Drives Butadiene Prices to Record High

1:46 PM MDT | May 23, 2007 | Peck Hwee Sim

Ashortage of butadiene in the U.S. has driven up butadiene contract prices to an all-time high. May contracts rose by 2 cts/lb, the third successive month of increases, to 58 cts/lb del, surpassing the previous record set in October 2006, when U.S. contract prices hit 57 cts/lb del. Butadiene spot prices have risen from 50 cts-55 cts/lb fob in the beginning of the year, to 64 cts-65 cts/lb fob, amid tight market conditions. Global butadiene supply has tightened in the past several years because demand growth in Asia has consistently outpaced capacity increases...

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