06 June 2012 17:01 [Source: ICIS news]
HOUSTON (ICIS)--Cheaper feedstock costs and growing availability of less expensive imports are pushing down on US June epoxy resins prices, sources said on Tuesday.
Buyers said that prices for material ordered in June are expected to fall by 5-10 cents/lb ($110-220/tonne, €88-176/tonne) from May levels.
“Prices have been quiet on the downside, but they need to fall,” a buyer said.
Producers said prices should fall by 5 cents/lb at the most, as cheaper May feedstock costs have not worked through the chemical chain.
Producers also argued that demand has been higher year on year as a result of a robust automotive coatings market.
In addition, more import material is available, priced in the high-$1.40s/lb, about 5-7 cents/lb below US domestic material.
“There is more import material available, but it isn’t as good a deal as it used to be,” a producer said.
Currently, domestic US epoxy resins prices are assessed by ICIS at $1.60-1.70/lb DEL bulk (delivered in bulk), but this price reflects material ordered in May.
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive.
($1 = €0.80)
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