18 June 2010 15:12 [Source: ICIS news]
LONDON (ICIS news)--Hexion Speciality Chemicals is confident that it can achieve a proposed increase of €200/tonne ($247/tonne) in European epoxy resin prices, a source with the US-based producer confirmed on Friday.
Hexion released a statement on 17 June in which it announced the targeted price increase, effective 1 July, due to feedstock tightness and strong demand in the epoxy sector.
“Epoxy is still short and this just reflects the environment in the market at the moment,” said the source.
Buyers, however, said they felt that prices were already too high. According to one customer, an upward increment was a definite possibility, but not at the level Hexion had proposed.
“[An increase of] €200/tonne would be a surprise,” said the customer.
If Hexion's price target were to be successful, it would be the seventh consecutive month in which liquid epoxy resin values had increased.
Epoxy resin prices have shot up from €1,790-1,850/tonne FD (free delivered) NWE (northwest Europe) in December 2009 to €2,850-2,960/tonne FD NWE in June, as assessed by ICIS.
Consumers also stated that while demand was stable, it was not spectacular. They added that the feedstock situation was improving.
The source did concede that the constant increases in epoxy resin prices could come to an end soon.
“Prices are already high and we are approaching the maximum level now. August values could remain stable if there is no significant upstream cost increase.”
($1 = €0.81)
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