US butadiene (BD) contracts were assessed 3 cents/lb ($66/tonne) lower in March, pressured by continued poor demand in an ever-weakening US economy.

The settlement put BD at 25 cents/lb, its lowest level since an August 2002 settlement of 24 cents/lb.

The outlook for April seemed to indicate continued weakness, as key end-use markets for BD were barely crawling into the second quarter, particularly the all-important tyre sector.

US automobile sales remained on a sharp downtrend in February, with total sales sinking by 45% from one year earlier to 542,797 units, according to industry figures released this week.

US car sales fell by 41% in January and 33% in December 2008, year on year.

The slump in car sales bodes ill for the tyre industry, which is also struggling with replacement tyre demand due to the bad economy.

According to an industry analyst, year-on-year replacement tyre sales in January were down by about 20% for passenger cars and 30% for light trucks.