25 May 2010 17:25 [Source: ICIS news]
LONDON (ICIS news)--Spolchemie will attempt to raise epoxy resin June contract prices by a minimum of €200/tonne ($247/tonne) due to feedstock shortages, it said on Tuesday.
“Costs continue to spiral upwards, we are fully loaded and have been on allocation since the beginning of the year,” a company source said.
This follows Dow Chemical‘s proposed €350/tonne hike from last week, effective 1 June, though several manufacturers even felt a €400/tonne jump could be possible on some accounts.
With the bisphenol A (BPA) feedstock still extremely tight, producers stated that epoxy output was severely restricted.
Several buyers said they were resigned to accepting significant increases due to material being so short and demand being healthy at the moment.
“This price increase is absolutely necessary to recover raw material cost increases and restore margins to more sustainable levels,” the Spolchemie source stated.
May’s liquid epoxy resin contract price was pegged at €2,550-2,660/tonne FD (free delivered) NWE (northwest Europe), according to data from global chemical market intelligence service ICIS pricing.
($1 = €0.81)
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