14 May 2014 16:43 [Source: ICIS news]
HOUSTON (ICIS)--US resin producer Momentive Specialty Chemicals expects to see a "favourable trend" in methanol pricing for the remainder of 2014 and into 2015, CEO Craig Morrison said on Wednesday.
The producer of forest product, epoxy, phenolic and coating resins is a big consumer of methanol.
Morrison said that the favourable trend would come after methanol pricing had gone "through a fair period of spiking".
"We consider that a favourable raw material right now, on methanol", with projected price declines this year in all regions of the world, Morrison said during Momentive’s first-quarter earnings call. He was responding to an analyst who asked about pricing and supply additions in the methanol industry.
For the first three months of 2014 ending 31 March, Momentive saw a sequential increase in its raw material costs from the 2013 fourth quarter, Morrison added.
Compared with the 2013 first quarter, the company saw mixed raw material pricing trends, with methanol prices rising 26% year over year, while phenol fell 2% and urea was down 5%.
"We continue to remain vigilant on the pricing front to effectively manage raw material volatility," Morrison said.
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