11 June 2013 23:59 [Source: ICIS news]
(recasts with June LER and SER settlement ranges in final paragraph)
LONDON (ICIS)--European solid and liquid epoxy resins (SER and LER) contract prices have declined by €50/tonne ($67/tonne) in June because of poor downstream demand and long supply, sources said on Tuesday.
Some buyers have asked for a larger decrease, but producers could only afford to offer a €50/tonne cut because of continued pressure on margins.
Imports from Asia continue to fuel a competitive environment, and most offers from Thailand and South Korea were around €2,250-2,350/tonne this week, excluding fees and handling costs.
One buyer estimated that demand had dropped by 10-12% during the first five months of 2013, compared to the same period of 2012.
The decline is due to ongoing macroeconomic concerns, and slow off-take from the downstream construction and automotive industries. Buying interest was further dampened by bad weather and floods in recent weeks.
June LER contracts settled at €2,650-2,700/tonne free delivered (FD) northwest Europe (NWE), while SER contracts settled at €2,500-2,550/tonne FD NWE.
($1 = €0.75)
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