July hikes proposed for US epoxy resins

16 June 2008 21:49  [Source: ICIS news]

HOUSTON (ICIS news)--Hexion has proposed an additional 9 cent/lb ($198/tonne, €129/tonne) increase for basic liquid (LER) and solid epoxy resins (SER) effective 1 July, following an 8 cent/lb initiative for June, a US buyer said on Monday.

Price hikes were also announced for Hexion’s specialty products, including a 7 cent/lb increase on certain specialty resin blends and waterborne coatings and a 10 cent/lb increase on curing agents.

Epoxy resin producers blamed rising crude oil and natural gas prices for a flurry of pricing initiatives that began to take effect in June.

Dow Chemical has also nominated LER price hikes of 3 and 12 cents/lb for June and July, respectively.

Huntsman announced an 8% price increase effective 1 July for basic and specialty resins.

Buyers said the June increases, and some portion of the July increases, were likely to be implemented. However, a drop in oil prices or an economic slowdown in the US could cause prices to fall rapidly, one buyer said.

North American prices for mid-to-large volume bulk liquid epoxy resin (LER) customers were at $1.55-1.61/lb on a delivered basis, according to data from global chemical market intelligence service ICIS pricing.

($1 = €0.65)

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By: David Barry
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