HOUSTON (ICIS)--US August epoxy resins contracts are expected to roll over, tracking mostly steady spot pricing and supply/demand balances, sources said on Tuesday.
Some US buyers have said they are receiving declines of 1-2 cents/lb ($22-44/tonne) in August, while others said they took declines in July.
Other buyers have said they will be flat in July and August but will take declines in September.
A US producer said this represents a small portion of the market and is mostly affecting buyers at the high end of the contract range.
The producer said that spot pricing movements have been around 1-2 cents/lb down in the past two months, which is not enough pressure to lower domestic values.
The producer said that margins were largely unsustainable throughout 2016, so margin restoration has been key for 2017.
Additionally, most market sources said that even with slightly softer spot pricing, the gap between domestic and imported epoxy favors domestic product.
US buyers have been pushing for lower domestic epoxy resins prices for several months as upstream costs have declined 8-12 cents/lb since the end of the first quarter, while domestic epoxy prices have been steady or up slightly since then.
July epoxy resin contracts had been assessed at $1.20-1.25/lb DEL (delivered) in bulk basis.
Major US epoxy resin producers include Hexion, Huntsman and Olin