25 March 2013 21:49 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--The US epoxy resins market will be facing a difficult second quarter, a producer said on Monday on the sidelines of the International Petrochemical Conference (IPC).
The producer said that margins on domestic epoxy resins need to move higher, which would happen if an April price-increase nomination of 8 cents/lb ($176/tonne, €136/tonne) finds traction.
“We ate too much of the feedstock costs earlier this year,” the producer said. “If the April increase goes through, that makes things sustainable.”
The producer said the nomination might not stick if less expensive imports flood the market.
Currently, market sources said import material is at a 10-15 cent/lb discount to domestic material.
“That probably won’t last,” the producer said. “The importers won’t leave that much money on the table.”
Most market participants expect that the delta will move to 8-10 cents/lb in the coming weeks as importers raise prices.
Hosted by the American Fuel & Petrochemical Manufacturers, the IPC continues through Tuesday.
($1 = €0.77)
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