19 March 2013 21:56 [Source: ICIS news]
HOUSTON (ICIS)--US spot prices for epoxy resins moved slightly higher on average, sources said on Tuesday, in response to a recent price increase in domestic contracts.
Buyers said that offers for overseas material being moved into the US are up to $1.40-1.45/lb ($3,086-3,197/tonne, €2,376-2,462/tonne) DEL (delivered) bulk.
This puts the low end of the ICIS range higher by 2 cents/lb, while the top end of the range was steady.
Sources said prices will likely continue to move slightly higher in the next few weeks as overseas sellers take advantage of higher US domestic prices.
US March contracts gained 8 cents/lb from February, putting material at $1.52-1.59/lb DEL bulk, as assessed by ICIS.
US producers said they are unconcerned with import competition, citing the need to restore margins.
“We are losing money on epoxy right now,” a producer said. “We can’t worry about competition when we’re not a sustainable business.”
A buyer said that price aggressiveness from US producers will give importers more market share.
“The market is oversupplied as it is,” the buyer said. “Why go with the more expensive option if you don’t have to?”
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive Specialty Chemicals.
($1 = €0.77)
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