Europe July epoxy resin drops €100/tonne on lower feedstock costs

12 July 2011 23:59  [Source: ICIS news]

LONDON (ICIS)--European July epoxy resin contracts have settled €100/tonne ($141/tonne) below the June contract price because of falling feedstock costs, market sources said on Tuesday.

This brings liquid epoxy resin (LER) prices down to €2,900-2,950/tonne FD (free delivered) NWE (northwest Europe).

July solid epoxy resins (SER) have reduced at the same rate and now stand at €2,950-3100/tonne.

Market players are concerned about struggling southern European economies and a sluggish economic recovery Europe-wide. In addition, the European holiday season in August is also expected to slow demand.

Currently, demand is healthy for both SER and LER, although signs of a slowdown are beginning to show, sources said.

"Italy has been the driver of SER demand in Europe but its economy is struggling now which may negatively influence future business," said a producer.

The contract price reduction was due to declining feedstock bisphenol-A (BPA) and epichlorohydrin (ECH) costs and improving supplies.

Raw material supplies in Europe have improved due to increasing BPA imports from Russia.

"The extra BPA imports from Russia and the feedstock price reduction have definitely contributed to the price decline," said a producer.

($1 = €0.70)

By: Janos Gal
+44 208 652 3214

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