28 October 2013 00:00 [Source: ICB]
US domestic epoxy resin contract prices are starting to decline on long supply, sources said on 15 October.
Several buyers reported seeing October contract pricing in the $1.35-1.41/lb ($2,976-3,108/tonne, €2,202-2,300/tonne) on a DEL bulk (delivered in bulk) basis.
This would be a 3 cent/lb decline from September contract levels of $1.38-1.44/lb DEL bulk.
“If supply and demand were balanced, we’d be seeing prices in the $1.37/lb range,” a buyer said. “But demand isn’t good, and there is a lot of material.”
Another buyer said contracts are rolling over but that producers are including extra material or rebates during the sale.
“They aren’t announcing a formal decline right now, but they aren’t passing up orders,” the buyer said. “They’ll do what they need to.”
Market players said supply is long because of continued imports from Asia.
“I think we’ve hit the floor and Asia has hit the floor,” a buyer said. “But prices won’t go up until next year.”
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