25 June 2013 21:46 [Source: ICIS news]
HOUSTON (ICIS)--US spot epoxy resin prices have started to hit their bottom, buyers and sellers said on Tuesday.
Buyers said they are seeing most business for spot and imported epoxy resins done in the $1.35-1.36/lb ($2,976-2,998/tonne, €2,262-2,279/tonne) range on a DEL bulk (delivered in bulk) basis.
“The overseas guys have reached their floor,” a buyer said. “Nothing is getting done below $1.35/lb.”
The floor on overseas epoxy resins is being attributed to mostly steady feedstock costs and weak demand in Asia.
Market sources said Asian sellers are looking to hold their offers for July material steady, despite a slight downturn in feedstock bisphenol A (BPA) prices, in order to restore some margins.
Operating rates in the region are low, sources said, as domestic demand from the construction and electronics sectors has been weak all year.
The weakness in Asia has pushed sellers to move material into the US market, where higher-priced domestic product has kept the arbitrage window open.
However, with overseas sellers reaching a low point on offers, some US players expect a decline in July domestic contracts.
One buyer reported receiving a 4 cent/lb drop in July contracts, and others are expecting declines as well.
“A move a few cents downward is possible, especially to close the gap between domestics and imports,” a seller said.
Currently, US domestic epoxy resins prices are assessed by ICIS at $1.47-1.56/lb DEL bulk.
Major US epoxy resins prices include Dow Chemical, Huntsman and Momentive.
($1 = €0.76)
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