09 August 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European August epoxy resin contracts settled down by €100–150/tonne from July, mainly because of weak demand from the downstream construction and electronics industries, declining feedstock epichlorohydrin (ECH) costs and good supply conditions, sources said on Tuesday.
The liquid epoxy resin (LER) contract settled down by €100–150/tonne at €2,750–2,850/tonne FD (free delivered) NWE (northwest Europe), while solid epoxy resins (SER) were down by €100/tonne ($143/tonne) at €2,850–3,000/tonne FD NWE.
One buyer said that demand for epoxy resins from the automotive industry has been affected by seasonal shutdowns in southern Europe.
"Issues with spare part supply from Japan have also contributed to the drop in demand from the electronics sector, as a lot of chip-making factories that exported to Europe were destroyed by the earthquake and tsunami in March," said one trader.
However, one producer said it had not been able to reduce its LER contract price by more than €80–100/tonne because the price of feedstock benzene has gone up.
"I expect an [epoxy resins] price increase from September because of increasing feedstock costs," said the producer.
Demand is also expected to pick up from September when buyers generally fill up their inventories. One trader said that it has already seen additional orders for next month.
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