HOUSTON (ICIS)--US June epoxy resin contracts were settled at a rollover on Tuesday, with buyers pushing for declines on weaker feedstock costs but producers holding to flat pricing on less pressure from imports.
The rollover puts June contracts at $1.20-1.25/lb ($2,646-2,756/tonne) on a DEL (delivered) in bulk basis.
US buyers said that upstream costs have shed 8-10 cents/lb in April and May, and that some of those savings should be passed down the chain.
However, sellers said that imported spot pricing has held mostly steady around $1.00/lb DEL, since late March.
Typically, imported product from Asia represents the floor of the US market, so steadiness there has limited downward pressure.
Several buyers said there June contracts fell as much as 2 cents/lb, but mostly on a formula basis. A majority of buyers said they rolled over in June.
Sources said they expect increased pressure for a decline in July, as there is some talk that overseas producers are lowering offer levels.
Overall, epoxy supply remained ample in June, while demand showed signs of improving in the second half of the month.
Major US epoxy resin producers include Hexion, Huntsman and Olin.
Pictured above: epoxy putty (Sipa Press/REX/Shutterstock)