12 August 2013 22:55 [Source: ICIS news]
HOUSTON (ICIS)--US domestic epoxy resins contracts for August are expected to fall, sources said on Monday, tracking long supply and falling feedstocks.
Sources said August domestic epoxy resin contracts will likely fall by 4-6 cents/lb ($88-132/tonne, €66-99/tonne).
This would put August contracts in the mid-$1.30s/lb to mid-$1.40s/lb, sources said.
July domestic contracts were assessed at $1.44-1.52/lb on a DEL bulk (delivered in bulk) basis.
Buyers said supply remains long as overseas producers continue to sell aggressively at a discount to domestic prices.
Spot prices are assessed at $1.35-1.40/lb DEL bulk and might have room to move lower, sources said.
Additionally, demand has been weakening in the US, which has led domestic producers to have larger inventories than planned.
Feedstock costs for epoxy resins from benzene and propylene have also been steady to slightly softer, creating room for US producers to come down slightly.
US refinery-grade propylene (RPG) prices gained 2.5 cents/lb from May to July, but benzene contract price fell by more than 5.5 cents/lb.
“We’ve been pushing for reductions in contract material based on weaker benzene,” a buyer said. “We are right around the $1.40/lb level, and there’s no room for increases.”
Major US epoxy resin producers include Dow Chemical, Huntsman and Momentive.
($1 = €0.75)
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