US Hexion seeks June epoxy resins hikes on costs, shortages

11 May 2010 22:38  [Source: ICIS news]

HOUSTON (ICIS news)--Hexion Specialty Chemicals is seeking a 10 cent/lb ($220/tonne, €172/tonne) increase on its epoxy resins products in the Americas to take effect on 1 June, the company said on Tuesday.

“This increase is in addition to previously announced increases and is driven by the continued rise in raw material costs as well as global and regional shortages of epoxy resins and their intermediates,” Hexion said in a posting on its website.

With this announcement, Hexion has nominated a total of 60 cents/lb in price hikes for 2010.

Huntsman Advanced Materials announced a similar 1 June increase at the beginning of May.

Dow Chemical was the third major supplier in the US.

An epoxy resins buyer said economic conditions in some downstream sectors, such as construction, were not strong enough to support the recent run-up in epoxy resins pricing.

The source said the US liquid epoxy resins (LER) market would likely remain tight in May and June, partly because there was not as much supply from overseas producers in the market.

US producers have had very limited spot availability in recent weeks because of raw material shortages and strengthening year-over-year demand, sources said.

Spot prices for May deliveries of bulk LER were mainly discussed in the $1.50s/lb DEL (delivered), although prices as high as $1.70/lb DEL have been paid, depending on customer need.

($1 = €0.78)

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By: David Barry
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