Operator: And we have time for one more question. Welcoming back to the stage for a question, we have Salvator Tiano with Bank of America Securities Inc. Your line is now open.
Salvator Tiano: I just want to also ask a little bit about the epoxy. And if you can refresh a little bit about your exposure to more commodity products versus downstream composites and systems? And how has that changed in the past few years since you made that — the major acquisition, I think it was 3 years ago.
Albert Chao: Yes. I think we’re covering most of the epoxy applications including coatings, electronics, windmill, blades as well as aerospace. So all these areas, we are participating both in the more commodity grades as well as more specialty grades. And so I think it’s just in the past with the unfair price Asian imports has impacted the margin of European and U.S. markets. But I think as we said earlier, we are seeing signs of improving pricing and demand is coming back slowly. So we’re seeing something [indiscernible] improvement already.
Operator: And please stand by, we will take one more question. Final question from David Begleiter at Deutsche Bank. Your line is now open.
David Begleiter: Albert, just back on the HIP margins. The last 3 years, HIP margins have increased from Q1 to Q2. I believe you’ve also been at various times pushing through higher PVC prices. So why would this should be any different in terms of margins increasing from Q1 to Q2 in HIP given the seasonally stronger demand even with pushing through some higher PVC prices?
Steve Bender: So David, as you think about the housing starts that we’ve seen, we’re continuing to see the homebuilders be constructive in their outlook for starts, and we continue to seek positive signals in permits. But we also recognize that affordability remains an issue. And so we’re really trying to be thoughtful about making sure that we can get the value for the product we’re pushing through, but we recognize there is only a certain speed in which we can push through each products downstream into our fabricated products. So it’s an issue of the timing of being able to push through these prices and not are we able to push through these prices. It’s just a matter of timing.
David Begleiter: And lastly, Albert, there is some new capacity from PVC coming onstream this year from other players. How do you foresee that impacting the market, if at all, as most of this is geared for the export market?
Albert Chao: Yes. I think with the lower big stock position, both for making ethylene, 50% of PVC’s ethylene. I know 50% is chlor-alkali, which is very heavy on power and natural gas feedstock. So with a low feed stick and power position, I think our industry is well positioned to participate in the global PVC market around the world and the U.S. exports around high 20, low 30 percentage of our production. And I think the U.S. industry with a great cost position we’ll continue to participate in the global markets.
Operator: At this time, the Q&A session has now ended. We’ll turn it over to John Zoeller for any closing remarks.
John Zoeller: Thank you again for participating in today’s call. We hope you will join us again for our next conference call to discuss our second quarter results.
Operator: Thank you for participating in today’s Westlake Corporation First Quarter Earnings Conference Call. As a reminder, this call will be available for replay beginning 2 hours after the call has ended. The replay can be accessed via Westlake’s website. Goodbye.
