Europe ECH and epoxy resin prices spike on tight supply

04 May 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)--European epichlorohydrin (ECH) and epoxy resin contract prices for May spiked on tight supply by €180-200/tonne ($237-263/tonne) and €300-400/tonne, respectively, market players said on Tuesday.

ECH was now pegged at €1,700-1,800/tonne FD (free delivered) NWE (northeast Europe), according to data from global chemical market intelligence service ICIS pricing.

“ECH margins have been low for a long time, so many producers hope this push in prices could finally see many in profit again,” stated one manufacturer.

Shortness of ECH was contributing to downstream epoxy tightness, which was exacerbated by the spike in bisphenol A (BPA) values.

Standard liquid epoxy resin (LER) was now selling at €2,500-2,660/tonne FD NWE, and standard solid epoxy resin (SER) at €2,700-2,800/tonne FD NWE.

SER was even tighter and spiked harder than LER due to it requiring more feedstock bis-phenol A (BPA). Also, as there were fewer SER producers, buyers had reduced flexibility to switch to other suppliers, according to participants.

“The markets at the moment are a complete disaster, and we don’t know when this will end,” said one trader.

($1 = €0.76)

For more on epoxy resins visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Amandeep Parmar
+44 208 652 3214

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