07 December 2010 17:15 [Source: ICIS news]
LONDON (ICIS)-- European liquid epoxy resin (LER) contracts rolled over in December, halting the €300-360/tonne ($400-480/tonne) price plummet seen in the previous three months, as feedstock pressures squeezed producer margins, sources said on Tuesday.
The seasonal slump in the downstream construction sector, plus overheated prices due to tight supply earlier in the year, saw epoxy resin numbers fall drastically since August.
Manufacturers stated, however, that upstream costs had barely moved in that time, and now they could not afford to drop the epoxy price further.
“It makes no sense to decrease prices further,” a producer said.
Several players settled at a rollover, and many had agreed two-month contracts in November, thus keeping prices stable.
The majority of LER business remained within the published range of €2,700-2,800/tonne FD (free delivered) NWE (northwest Europe). Solid epoxy resins also rolled over, at €2,800-2,950/tonne FD NWE for the same reasons.
($1 = €0.75)
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