14 June 2013 09:30 [Source: ICB]
US spot prices for epoxy resins fell on 4 June, tracking continued long supply and lower-than-expected demand.
US prices were assessed lower by 3-5 cents/lb ($66-110/tonne, €50-84/tonne), moving to $1.35-1.40/lb on a DEL (delivered) in basis.
Overseas producers have kept their material at a discount to US domestic product for all of 2013 in order to increase their market share, sources said.
This was more profitable for overseas producers when US material was high-priced because of soaring upstream costs. However, feedstock costs have come down in the spring, allowing US producers to lower their costs.
"The difference between the imports and the domestics is eroding," the importer said. "Demand is not that strong."
US buyers said the gap is still wide enough that they are buying overseas material where possible. "Domestic prices will start to come down because they'll respond accordingly," a buyer said. "But the imports are still more attractive."
Major US producers of epoxy resins include Dow Chemical, Huntsman and Momentive Specialty Chemicals.
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