20 March 2013 13:59 [Source: ICIS news]
NUREMBERG (ICIS)--The European epoxy resins market is starting to feel the effects of tightening feedstock supply, and prices are likely to rise in April, an industry executive told ICIS on Wednesday.
Nigel Seymour, vice president of base epoxy resins and intermediates at US-based Momentive, said as a result of tighter supply and higher costs for feedstocks epichlorohydrin (ECH) and bisphenol A (BPA), April will bring significant epoxy resins price increases.
"We are still weighing up the exact figure, but it will be substantial," Seymour said from the sidelines of the European Coatings Congress and Show in Nuremburg.
Momentive has an epoxy resins plant in Pernis, the Netherlands, with a nameplate capacity of 100,000 tonnes/year, according to ICIS plants and projects.
"The second quarter represents the best opportunity to increase prices because demand is better and feedstocks are tight," Seymour added.
Seymour said the final decision on the price hike will be influenced by feedstock developments heading into April, but even a drop in raw material prices will not deter substantial increases.
The epoxy resins market has been hit hard by the economic downturn since 2009, amid high feedstock costs and low demand from the downstream coatings, automotive and construction industries.
The price of liquid epoxy resins (LER) fell from €2,900-2,950/tonne ($3,718-3,782/tonne) free delivered (FD) northwest Europe (NWE) in July 2011 to €2,630-2,670/tonne FD NWE in March 2013.
"There is an absolute need to improve margins. The industry is hardly making any money and this cannot go on for long," Seymour added.
The congress runs from 18-19 March and the show from 19-21 March.
($1 = €0.78)
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