Latest climb in urea costs to be passed on to adhesive resin prices

Adhesive and impregnating resin manufacturers have faced another dramatic rise in raw material costs over the past few weeks. Unexpectedly short negotiations resulted in a methanol contract price of €340/t FOB Rotterdam being set for second-quarter deliveries on 22 March 2012. Spot prices for methanol have surged in the past few weeks in the wake of the EU Council’s embargo on imports of petrochemical products from Iran, adopted on 23 January, and the resulting supply cutbacks. Contract prices might climb again in the third quarter as a result of these circumstances. The jump in urea prices is even more critical for resin manufacturers.