08 March 2011 23:59 [Source: ICIS news]
SAN producers were chasing hikes of €80/tonne, after the upstream March styrene barge contract settled up by €18-39/tonne on a free delivered (FD) northwest Europe (NWE) basis, and in anticipation of around a €100/tonne hike in upstream acrylonitrile (ACN) this month.
Purchasers of SAN resisted these price initiatives though, stating that the feedstock costs increases did not justify the amount being asked, especially after the €80/tonne rises seen last month.
“Demand was high in February, and producers took the opportunity to hike prices. Now there is not much in stock,” said one customer.
The market remained short, as order levels were good for March and turmoil in ?xml:namespace>
Nevertheless, buyers said they were able to secure what they needed and managed to negotiate more modest rises than sellers were asking.
One customer added that due to the already high prices it was increasingly difficult to pass on costs, and could foresee a drop off in demand if values did not return to more stable levels.
“It will be difficult to keep purchasing at the same level,” said one consumer.
Compounding grade was now assessed at 2,030-2,050/tonne FD NWE, according to ICIS
($1 = €0.72)
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