HOUSTON (ICIS)--US March domestic epoxy resin contract prices were assessed at a rollover on Tuesday as supply remains long and demand is sputtering.
The rollover keeps US domestic epoxy resin contracts at $1.35-1.41/lb ($2,976-3,108/tonne) on a DEL bulk (delivered in bulk) basis.
Sources said that US producers were able to implement a 3 cent/lb price increase over the February and March contracts.
As February contracts were assessed higher by 3 cents/lb, March contracts were assessed at a rollover.
“In some cases it was more, depending on where they were coming from,” a producer said. “Pricing in the mid-$1.30s/lb is where most everyone is.”
Sources said that the timing of the increases was mixed, with some opting to take the increase in February, others in March and others splitting the increase over the two months.
Producers initially sought a 5 cent/lb increase over the two months, with some sellers reporting being able to implement the full amount.
However, producers said that those that took the full 5 cent/lb increase were often at the lower end of the assessed range.
Most market players agreed that pricing is in the mid-$1.30s/lb for domestic material, although some said they are closer to the low-$1.30s/lb.
The US epoxy resin market remains long, with import competition still fierce and inventories healthy.
Sources said that demand has been flat, with little activity for a pre-build ahead of the US coatings season reported.
“We were expecting more activity but there’s been little action,” the producer said. “The market is still long, people have stuff in their tanks.”
Major US epoxy resin producers include Dow Chemical, Huntsman and Momentive.