06 November 2012 17:01 [Source: ICIS news]
HOUSTON (ICIS)--US November domestic epoxy resins contracts are expected to roll over as softer demand is balanced by higher feedstock costs, sources said on Tuesday.
Despite upstream benzene values reaching record highs, sources said there have been no price increase nominations for material shipped in November.
This would keep pricing at $1.38-1.45/lb ($3,042-3,197/tonne, €2,373-2,493/tonne) DEL (delivered) in bulk, flat with the October assessment.
A producer said that while demand is holding its own, it is also experiencing its typical seasonal downturn.
“If it were any other time of the year, we’d be raising prices because of benzene,” the producer said. “But demand is falling so it wouldn’t really get us anywhere.”
Buyers echoed this sentiment, saying that higher epoxy resins prices would push them toward minimum orders and trying to wait out the effects of the record-high benzene.
“Producers are being forced to be very competitive,” a buyer said. “They know they need to unload material.”
Additionally, imported material remains priced competitively with domestic product, buyers said, keeping a ceiling on how high producers can move prices.
Most of the material is coming from Asia, sources said, and will likely be available through the end of the year.
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive Specialty Chemicals.
($1 = €0.78)
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