07 September 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European September epoxy resin contracts settled at rollovers to €50/tonne ($64/tonne) decreases, depending on the starting point of negotiations, sources said on Tuesday.
Buyers and sellers agreed there was no upward price pressure as values were already high after numbers spiked earlier in the year due to extreme tightness.
Most customers said they achieved modest reductions in price as feedstock shortages were no longer an issue and availability had improved since the second quarter when the market was tightest.
Liquid epoxy resin (LER) prices from buyers were heard as low as €2,900/tonne FD (free delivered) NWE (northwest Europe), but the majority were around €2,950/tonne FD NWE or higher.
Most producers, on the other hand, said that stable numbers were maintained at around €3,000/tonne FD NWE, with demand improving this month as players returned from their holidays in August and were looking to restock.
The main reason prices were not falling further was the continued lack of Asian imports due to feedstock shortages in the region, according to players.
“The market is fairly balanced so there is no need to go significantly below the Asian import price,” said one European producer.
($1 = €0.78)
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