HOUSTON-US liquid epoxy resins (LER) producers are seeking price increases of 7-10 cents/lb ($154-220/tonne , 16-165/tonne) in January based on rising feedstock costs, buyers and sellers said on Tuesday.
Momentive Specialty Chemicals was pushing for a 7 cents/lb increase effective 1 January, while Dow Chemical was aiming for 15 January implementation of a similar amount. A market source said Huntsman announced a 10 cents/lb hike for 15 January.
Dow proposed an additional price increase of 10 cents/lb effective 1 February, sources said.
A buyer said the February announcement was likely intended to lend credence to the January price initiative, and some increase, perhaps 5 cents/lb, could be implemented in January.
Another buyer said the price increases would make US producers less competitive with suppliers of Asian imports.
US LER demand was stable at seasonally-slow levels, sources said. Producers pointed to rising petrochemical feedstock prices to justify the LER increases.
Propylene, a feedstock for LER intermediates acetone and epichlorohydrin (ECH), is poised for a sharp price increase in January.
In addition, global bisphenol-A (BPA) supply is expected to remain tight for the foreseeable future, although Asian demand has retreated from a peak in November 2010, a US LER producer said.
With the January increases pending, US LER prices for mid-volume customers were at $1.52-1.60/lb DEL (delivered), as assessed by ICIS.
($1 = .75)
Momentive Specialty Chemicals was pushing for a 7 cents/lb increase effective 1 January, while Dow Chemical was aiming for 15 January implementation of a similar amount. A market source said Huntsman announced a 10 cents/lb hike for 15 January.
Dow proposed an additional price increase of 10 cents/lb effective 1 February, sources said.
A buyer said the February announcement was likely intended to lend credence to the January price initiative, and some increase, perhaps 5 cents/lb, could be implemented in January.
Another buyer said the price increases would make US producers less competitive with suppliers of Asian imports.
US LER demand was stable at seasonally-slow levels, sources said. Producers pointed to rising petrochemical feedstock prices to justify the LER increases.
Propylene, a feedstock for LER intermediates acetone and epichlorohydrin (ECH), is poised for a sharp price increase in January.
In addition, global bisphenol-A (BPA) supply is expected to remain tight for the foreseeable future, although Asian demand has retreated from a peak in November 2010, a US LER producer said.
With the January increases pending, US LER prices for mid-volume customers were at $1.52-1.60/lb DEL (delivered), as assessed by ICIS.
($1 = .75)
