07 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European liquid and solid epoxy resin (LER and SER) contract prices in May rolled over because of weak demand and oversupply, sources said on Tuesday.
The LER contract is at €2,700-2,750/tonne ($3,552-3,618/tonne) FD (free delivered) NWE (northwest Europe), while the SER contract is at €2,550-2,600/tonne FD NWE.
Prices did not decrease because epoxy resins producers cannot afford to lower them, as a result of historically high feedstock costs.
There were a very few contracts that rose or decreased by €20-30/tonne, but they were the minority and therefore not included in the May assessment.
Producers argued that the propylene price decrease in May did not justify an epoxy resins price drop because at the same time benzene contracts increased. In addition, feedstock epichlorohydrin (ECH) supply is still tight, so its price is high.
($1 = €0.76)
Follow Janos Gal on Twitter @janosgalICIS
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