13 November 2012 21:55 [Source: ICIS news]
HOUSTON (ICIS)--US domestic epoxy resins prices for material shipped in November rolled over, sources said on Tuesday.
ICIS-assessed prices for domestic epoxy resins remained at $1.38-1.45/lb ($3,042-3,197/tonne, €2,403-2,525/tonne) on a DEL bulk (delivered in bulk) basis.
Sources said domestic material shipped in November is being done at largely equal prices compared with material shipped in October.
“There’s a surplus of material on the market,” a buyer said. “Domestic producers are competing with each other for business.”
Sources said much of the price competition between domestic producers is being fuelled by the seasonal decline in demand.
With cooler weather hitting most of the country, the paints and coatings market is slowing down.
There is some hope that a late-season boost in demand from the regions hit by Hurricane Sandy could occur, but most buyers were cautious about those prospects.
Most expected that any Sandy-related demand boost would not hit until 2013, after end-of-the-year inventory taxes have been assessed.
“There is some hope of an earlier pre-build to help with the Hurricane Sandy area,” a coatings market player said. “But the odds are that current inventories could handle that.”
Sources added that supply is long, as less expensive import material continues to flow into the country and operating rates remain high.
Producers said that they felt the end of the year is a poor time to chase price increases, but said their margins are suffering because of high feedstock costs.
Major US producers of epoxy resins include Dow Chemical, Huntsman and Momentive.
($1 = €0.79)
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