Europe March SAN up €60/tonne on higher feedstocks, tight supply

08 March 2011 23:59  [Source: ICIS news]

LONDON (ICIS)--European styrene acrylonitrile (SAN) contracts for March rose by €60/tonne ($83/tonne) due to increased feedstock costs and tight supply, sources said on Tuesday.

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 Libya was leading to uncertainty over upstream crude, which enabled SAN sellers to drive a strong bargaining position.

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)

For more on SAN visit ICIS chemical intelligence 
To discuss issues facing the chemical industry go to ICIS connect 

By: Amandeep Parmar
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly