18 July 2011 21:46 [Source: ICIS news]
HOUSTON (ICIS)--US epoxy resins buyers expect domestic prices will remain stable throughout July, sources said on Monday.
Buyers said domestic prices for standard liquid epoxy resins (LER) were around $1.80-1.86/lb ($3,968-4,101/tonne, €2,817-2,911/tonne), with standard solid epoxy resins (SER) about 3-4 cents/lb higher, as assessed by ICIS pricing.
“There’s no downward price pressure at the moment because strong demand is offsetting weaker feedstocks,” a producer said, adding that prices would not start to fall until August at the earliest.
Most buyers agreed with this sentiment, and did not expect price concessions to be large.
“When the market starts to soften, it will definitely be at a slow pace,” one buyer said.
Another buyer argued that July LER prices were in the range of $1.75-1.80/lb. Other buyers and producers said that those prices were atypical and not reflective of the market.
Another factor keeping domestic LER and SER prices stable is competition from overseas distributors. Sources said distribution prices have remained solidly 3-4 cents/lb above domestic prices since late May.
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive.
($1 = €0.71)
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