US August domestic epoxy resin contracts expected to fall

12 August 2013 22:55  [Source: ICIS news]

US August domestic epoxy resin contracts expected to fallHOUSTON (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)

By: John Dietrich

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index