S Korea epoxy resins imports to EU jumps following FTA introduction

14 May 2013 16:15  [Source: ICIS news]

(recasts article clarifying epoxy resins imports from South Korea to the EU doubled since 2010 following the implementation of a free trade agreement)

LONDON (ICIS)--Epoxy resins imports from South Korea to the EU have more than doubled since 2010, after a free trade agreement (FTA) was implemented between the two regions in 2011, Eurostat data showed on Tuesday.

The EU imported 12,628 tonnes of epoxy resins in 2012, up from 5,433 tonnes in 2010. Imports from South Korea represented more than 10% of the total EU epoxy resins imports from the rest of the world in 2012, which was 118,552 tonnes, down from 121,805 tonnes in 2010.

Epoxy resins exports from the EU to South Korea went from 3,572 tonnes in 2010 to 4,599 tonnes in 2012.  

Epoxy resins trade between EU and South Korea (tonnes)

Period

Exports

Imports

Jan.-Dec. 2010

3,572

5,433

Jan.-Dec. 2012

4,599

12,628

"The huge upward shift in imports shows that South Korean producers have taken advantage of the agreement and exported more material to the EU since the FTA," one epoxy resins producer said.

It called the FTA a one-sided agreement referring to the import data which in the producers' opinion clearly shows which party benefited more from the FTA. 

South Korean-origin epoxy resins is offered at €2,300/tonne ($2,987/tonne) delivered to European distributors, but this does not include mainland delivery costs and trader margin - which is about 5-6%, bringing the price of imported material to about €2,450/tonne FD NWE.  

One South Korean exporter said that because feedstock costs are much cheaper in Asia and therefore their production costs are lower, they can offer cheaper epoxy resins than their European counterparts. This has resulted in more inquiries from European buyers which are keen to take advantage of the arbitrage window. 

($1 = €0.77) 

Follow Janos Gal on Twitter @janosgalICIS


By: Janos Gal
+44 208 652 3214



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