08 January 2013 22:23 [Source: ICIS news]
HOUSTON (ICIS)--US spot prices for epoxy resins were assessed lower by 1.4% on Tuesday on improved supply and cheaper overseas material.
Buyers and traders said spot prices had moved into the mid-$1.30s/lb level on a DEL bulk (delivered via bulk) basis.
This pushed the ICIS assessment to $1.35-1.42/lb ($2,976-3,131/tonne, €2,262-2,379/tonne) DEL bulk, down by 2 cents/lb from the previous assessment.
“The Asians are desperate to sell,” a buyer said. “And they are basing their prices on cheaper benzene.”
With US benzene prices reaching record highs, US producers have nominated price increases of 6 cents/lb and 12 cents/lb for January.
However, sources said that if the nominations are accepted, Asian producers will likely move their prices up to keep them at a slight discount to US domestic product.
Buyers said that improving demand to start 2013, mostly from the US construction and automotive industries, could allow domestic price-increase nominations be accepted.
“If anything for January sticks, it will probably be delayed,” a US buyer said. “But benzene moving higher continues to give producers leverage.”
Major US producers of epoxy resins include Dow Chemical, Huntsman and Momentive.
($1 = €0.76)
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