US May epoxy soft amid competitive material, slower demand

HOUSTON (ICIS)–US epoxy is soft in May due to pressure from imports and headwinds in demand.

In general, downward pressure has been noted for both domestic and imported material this month. The recent downward trend has provided an opportunity for some players to restock.

A wider gap was mentioned between domestic and import pricing due to lower quotes from overseas suppliers, making imports attractive for some buyers.

Imports have created a competitive landscape this quarter, with higher volumes of material exported from South Korea to the US in March and April.

Meanwhile, demand has been hampered by a slowdown in the automotive and construction sectors during the pandemic, but players are eyeing the restart of auto production and non-essential construction in North America.

As a result, there is guarded optimism that demand could start to recover going into June, although some uncertainty is likely to persist.

Players will continue to monitor global economic developments, especially the recovery in China, to see if it translates into more positive sentiment or into any changes in trade flows.

Epoxy resins are used as adhesives on metals and construction materials, as well as in coatings and automobiles.

Major US epoxy resin producers include Hexion, Huntsman and Olin.

Thumbnail image shows a wind turbine, which are often made of epoxy resin. Photo by Shutterstock