Asia epoxy resin export offers up on upstream gains; but demand hazy

SINGAPORE (ICIS)--Export offers for northeast Asia-origin epoxy resin cargoes are edging up alongside upstream gains, but upside potential may be capped if downstream demand does not recover sufficiently. This week, some producers were looking to move up, possibly to the tune of $50-100/tonne, their asking prices for cargoes available to lift in late February/March. This was necessary to rescue eroding margin, sellers said, given that prices for raw materials like bisphenol A (BPA) and epicholorohydrin.(ECH) have climbed in recent times. Average BPA prices had gone up by more than $100/tonne within a month, closing at an average of $1,395/tonne CFR (cost-and-freight) China on 8 February, according to ICIS data, compared to just $1,250/tonne at the start of the year. ECH prices have firmed too, as spot availability is drying up in view of various upcoming plant shutdowns in the region, including the 100,000 tonne/year Formosa Plastics plant in Taiwan that will go off-line from mid-February to early March, and another 60,000 tonne/year line in South Korea that will shut from mid-March to end-April.