04 June 2013 12:29 [Source: ICIS news]
LONDON (ICIS)--European June epoxy resins contract negotiations are drawing to a close, and sources speaking on Tuesday expected to receive small reductions on the back of poor demand.
Sources said decreases will range between €20-50/tonne ($26-66/tonne), depending on starting point, although some producers are also aiming to roll prices over to maintain margins.
According to a western European producer prices will only drop by up to €30/tonne and no more. The producer said the €50/tonne fall targeted by buyers is wishful thinking, as sellers cannot afford to drop prices by that much.
Another producer said demand seems to be picking up after a weak April and May, when the weather was too poor for outdoor construction projects.
There are expectations that the peak season this year will be delayed slightly, and the traditional slowdown in July and August will not take place as the construction industry will play catch-up after a slow start to the year.
On the other hand, some sources believe that this year is very different from anything they have seen before, and do not expect any major improvement in demand at all.
(€1 = $0.76)
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