US epoxy resins producers seek 7-10 cent/lb January price hikes

04 January 2011 18:41  [Source: ICIS news]

HOUSTON (ICIS)--US liquid epoxy resins (LER) producers are seeking price increases of 7-10 cents/lb ($154-220/tonne , €116-165/tonne) in January based on rising feedstock costs, buyers and sellers said on Tuesday.

Momentive Specialty Chemicals was pushing for a 7 cents/lb increase effective 1 January, while Dow Chemical was aiming for 15 January implementation of a similar amount. A market source said Huntsman announced a 10 cents/lb hike for 15 January.

Dow proposed an additional price increase of 10 cents/lb effective 1 February, sources said.

A buyer said the February announcement was likely intended to lend credence to the January price initiative, and some increase, perhaps 5 cents/lb, could be implemented in January.

Another buyer said the price increases would make US producers less competitive with suppliers of Asian imports.

US LER demand was stable at seasonally-slow levels, sources said. Producers pointed to rising petrochemical feedstock prices to justify the LER increases.

Propylene, a feedstock for LER intermediates acetone and epichlorohydrin (ECH), is poised for a sharp price increase in January.

In addition, global bisphenol-A (BPA) supply is expected to remain tight for the foreseeable future, although Asian demand has retreated from a peak in November 2010, a US LER producer said.

With the January increases pending, US LER prices for mid-volume customers were at $1.52-1.60/lb DEL (delivered), as assessed by ICIS.

 ($1 = €0.75)

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