SINGAPORE (ICIS)--China’s domestic spot liquid epoxy resins (LER) prices surged to a 28-month high on 12 August, up by around 7% from the previous week because of higher feedstock cost, according to ICIS pricing data on Wednesday.
Domestic LER prices were at yuan (CNY) 20,250/tonne ($3,287/tonne) for material sold in drums on a DEL (delivered) east China basis.
LER prices have shot up by 15% since 8 July this year to a level not seen since April 2012, after rising for five consecutive weeks previously, ICIS data showed. This is because spot LER supply had been reduced following high feedstock bisphenol A (BPA) prices and rising feedstock epichlorohydrin (ECH) prices.
A few major local LER producers have cut their plant operating rates and are producing mainly to fulfil their contractual requirements only.
The average epoxy resins operating rate in China currently stands at around 50%, down from 70-80% in June, before the surge in raw material prices, according to market sources.
Moreover, some smaller solid epoxy resins (SER) producers in China have shut down their plants as more BPA is required to produce SER as compared to LER, the sources said.
Roughly 0.8 tonnes of BPA is required to produce one tonne of SER as compared to 0.7 tonnes of BPA for one tonne of LER.
($1 = CNY6.16)