‘Perfect storm’ engulfs US epoxy market as producers seek hikes

04 May 2010 22:18  [Source: ICIS news]

HOUSTON (ICIS news)--Rising demand, reduced imports and tight feedstock supply have merged to create a “perfect storm” in the US epoxy resins market, sources said on Tuesday, with producers aiming to extend price gains in May.

US buyers said Dow Chemical announced a 10 cent/lb ($220/tonne, €167/tonne) price increase for epoxy resins in North America, effective 15 May.

The other two major US producers, Huntsman and Hexion, announced 10 cent/lb price increases to take effect on 1 May, and sources said more could be on the way.

“Everybody keeps ratcheting stuff up, it’s just ridiculous,” a buyer said.

Following Dow’s Oyster Creek phenol outage and subsequent epoxy resins force majeure, buyers expected the market to recover to balanced conditions by the end of May.

Stronger-than-expected demand and tight feedstock epichlorohydrin (ECH) supply in the US have caused market participants to recalibrate that outlook.

“We’ll be tight through May and June. July will be key with companies slowing down [for summer holidays and maintenance],” a buyer said.

Bulk pricing for mid-volume liquid epoxy resins (LER) buyers was $1.44-1.55/lb, according to data from global chemical market intelligence service ICIS pricing.

($1 = €0.76)

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By: David Barry
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