09 April 2013 21:51 [Source: ICIS news]
HOUSTON (ICIS)--US epoxy resins market players were mixed regarding April domestic contracts, keeping prices steady on Tuesday.
A major US producer said it had implemented price increases of 4-8 cents/lb ($88-176/tonne, €68-136/tonne) for its April contracts.
Some buyers said they had taken on increases in April contracts, although they said these increases still kept their contracts within the ICIS-assessed range of $1.52-1.59/lb on a DEL bulk (delivered in bulk) basis.
“We took on two increases and had one contract roll over,” a buyer said. “We’re hoping for a decrease in May.”
Other buyers said they had not settled contracts for April and were pushing for a rollover or a decrease on upstream weakness.
“We don’t see how prices can be going up,” another buyer said. “Everything else is coming down.”
Producers had said that steady pricing at the end of 2012 eroded their margins because of surges in feedstock costs.
As a result, prices have needed to increase to make production viable, even as the feedstock costs have started to weaken in February and March.
“We’re still playing catch-up with margins,” a producer said. “We’re only now starting to have some room with feedstocks coming down.”
Major US epoxy resins producers include Dow Chemical, Huntsman and Momentive.
($1 = €0.77)
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