20 December 2011 23:01 [Source: ICIS news]
HOUSTON (ICIS)--US domestic and spot epoxy resins prices widened because of longer supply and higher feedstocks, sources said on Tuesday.
The movement in the domestic market pushed prices to $1.45–1.59/lb ($3,197–3,505/tonne, €2,461–2,699/tonne) DEL bulk (delivered in bulk), as assessed by ICIS.
Sources said the range represents the price for US material ordered in late December and delivered in late January or early February.
The range widened from the previous assessment of $1.51–1.59/lb DEL bulk because several large and medium buyers received bigger discounts than smaller buyers.
“Domestic competition is the biggest factor driving this fall,” a producer said. “However, everything is expected to spike in January and February.”
Buyers said supply of epoxy resins is ample, which is the biggest factor pushing down on prices.
“There is long supply domestically and for imports,” a buyer said. “Prices are tapping out and hitting bottom.”
A producer said it was doing most of its business at prices on the high end of the range and that it had not given any discounts to buyers for January or February material.
Several sources said they expect prices will increase in January for material to be delivered in February or March.
“Benzene is getting pricier and propylene is flat or will increase, so prices should rebound,” a producer said.
On the import side, spot prices fell to $1.41–1.46/lb DEL bulk, down by 5 cents/lb from previous levels, also on long supply.
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive.
($1 = €0.77)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections