03 December 2013 23:16 [Source: ICIS news]
HOUSTON (ICIS)--US December epoxy resin contract prices are heading toward a rollover, sources said on Tuesday, despite long supply.
Several buyers said they are expecting US producers to nominated rollovers for December contracts as year-end activity has thinned.
Sources said producers are feeling a continued margin crunch as feedstock benzene and propylene prices have risen or will move up in December.
However, domestic and imported spot material remains at a discount of 5-6 cents/lb ($110-132/tonne, €81-98/tonne), which is keeping competition fierce for market share.
Buyers said that although prices remain in the low $1.30s/lb for contract material, the floor might not have been hit.
“There is room for prices to keep coming down,” a buyer said. “Epoxy is so long globally and this is the strongest region demand-wise.”
Some buyers said they would be aggressive with December contracts and seek a 1-2 cent/lb decrease.
US November epoxy resin contract prices were assessed at $1.32-1.38/lb on a DEL (delivered) bulk basis.
Major US epoxy resin producers include Dow Chemical, Huntsman and Momentive Specialty Chemicals.
($1 = €0.74)
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