European epoxy resins sellers are targeting sharp price hikes in August, currently ranging from €70-100/tonne, citing thin margins and cost pressure in recent months.
“We are targeting a €100/tonne increase [for August]… The increase in August is compensating for what happened in the first half of the year, compensating for losses, low margins,” a seller said.
Another seller said: “We are going with [a] price increase of €70-100/tonne [for August]. Absolutely, we’ve passed the red line already. Now is the time. If we lose volumes, we lose.”
Sell-side sources indicated that although demand in July was good for the time of year, margins remain thin, on the back of upstream cost pressure. However, demand in August is traditionally weak, owing to the summer holiday season in Europe in July and August, when many players take vacation and plants close.
Buyers generally said they are anticipating epoxy resins prices to roll over in August, due to the soft demand, and could move to the sidelines if price increases are overly aggressive.
“To be honest, we expect more or less a rollover in August. Some announced raw materials increases in Asia, which will have an impact on prices in Asia. Up to now we’re discussing rollovers with suppliers [in Europe],” a buyer said.