Are low oil prices going to reduce epoxy prices?

The price of epoxy has not come down at all, will it anytime soon?

 

I can't comment on epoxy, but polyester production costs haven't dropped as much with the lower oil prices as they would have in the past.

At one time the cost of resin was closely tied to oil, but what has happened over the last 10-15 years is oil has become a smaller percent of the overall cost of the resin, and other raw materials and energy costs have become greater. So now with lower oil prices customers are screaming for lower pricing, and for the most part it is going down, but not at the rate it once did.

 

I hope so. As the price of oil drops, so does the cost of transportation, heat, and raw materials.

 

Their all making piles o money so I doubt their prices will drop. Sure would be nice if they did though the cost of epoxy sure is a high hurdle for many builders......g

 

Seems like a forlorn hope that the price of petrochemicals will fall in proportion to oil prices. It would be a small portion of the production costs in some cases.

 

Without competition, the prices would not fall, but there a many companies that supply epoxy. That's how prices drop.

Next time you buy epoxy, shop for a lower price. I've always bought West System, but I won't do it again.

 

To some extent it has to do with how long prices remain depressed. Commercial operations buy stock months out, at fixed prices. It takes time for new crude oil prices to work their way thru the system. Particularly when a lot of people are thinking these low prices are a blip, and will go up again pretty soon.