19 February 2013 17:21 [Source: ICIS news]
LONDON (ICIS)--The EU imported 38% more epoxy resins from the rest of the world in November 2012 than in the same month a year earlier, mostly because import duties on South-Korean-origin material were scrapped in July 2011, sources said on Tuesday.
The EU and South Korea signed a free trade agreement in July 2011, which means that South Korea does not have to pay a 6.5% import duty on epoxy resins imports to the EU. As a result, imports have risen steadily since January 2012, Eurostat data shows (see table below).
Epoxy resins imports from South Korea (units: tonnes)?xml:namespace> Source: Eurostat Imports Jan. 2012 733 Feb. 2012 518 Mar. 2012 1,249 Apr. 2012 1,034 May. 2012 1,328 Jun. 2012 806 Jul. 2012 1,116 Aug. 2012 664 Sep. 2012 760 Oct. 2012 1,320 Nov. 2012 1,965 Jan.-Nov. 2012 11,497
A European trader said that it would like to increase prices by at least €20-30/tonne to improve margins, but it seems it is impossible with such poor demand and aggressive price offers from South Korea.
Epoxy resins imports from South Korea (units: tonnes)?xml:namespace>
It said that since a free trade agreement was signed between the EU and South Korea, there has been an influx of material at much lower prices than offered by European suppliers.
European February liquid epoxy resins prices are at €2,630-2,670/tonne ($3,507-3,560/tonne) free delivered (FD) northwest Europe (NWE), while Asian material is offered at $2,620-2,660/tonne free on board (FOB) northeast Asia (NE).
($1 = €0.75)
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