Market and product
US May epoxy resin contracts assessed lower on long supply
HOUSTON (ICIS)--US May epoxy resin contract prices were assessed slightly lower on Tuesday as long supply pressured the market downward.
US May domestic contracts were assessed lower by 1 cent/lb ($22/tonne) at $1.34-1.40/lb on a DEL bulk (delivered in bulk) basis for standard liquid material.
Buyers said that US producers initiated declines of 2 cents/lb for May in an effort to protect market share.
A producer disagreed, saying it went down by at most 1 cent/lb and rolled over most of its contracts.
“We only dropped prices where we felt there was a legitimate threat of losing business,” the producer said. “In our mind, prices didn’t move too much.”
The producer added that most declines for May were aimed at buyers on the higher side of the current range.
Buyers said that US producers continue to feel pressure from overseas sellers, especially in Asia, and looked to prevent any loss of market share heading into the peak coatings season.
The producer agreed, saying that Asian sellers continue to hold a cost advantage on material, even after shipping, and in some cases have slashed margins to the bone.
The decline also came as feedstock costs in the US have eased slightly in April and May, giving US producers some room to chase volumes with lower prices.
Major US epoxy resin producers include Dow Chemical, Huntsman and Momentive.
