21 December 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European December styrene acrylonitrile (SAN) contracts were settled at an increase of €20-40/tonne ($26-53/tonne) from November because of higher feedstock costs and unusually strong year-end demand, buyers and sellers said on Tuesday.
SAN compounding grade for December was assessed at €1,770-1,780/tonne FD (free delivered) NWE (northwest Europe).
While an increase was expected due to the gains seen on December styrene barge contracts, strong demand this month also played a factor.
The key reason for the unexpectedly high demand was ongoing tightness in the poly methylmethacrylate (PMMA) market, an alternative plastic used in automotive and building applications, which meant that many players were switching to SAN.
January was already looking to be a strong month demand wise, and some sources predicted increases of up to €60/tonne. However, the amount would depend on where the styrene monomer barge contracts eventually settled.
($1 = €0.76)
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