24 January 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European January styrene acrylonitrile (SAN) contracts settled up by €90/tonne ($116.9/tonne) because of hikes in upstream styrene costs, and producers said on Tuesday they expect further increases next month for the same reason.
January SAN prices are pegged at €1,900–1,910/tonne FD (free delivered) NWE (northwest Europe).
Buyers and sellers agreed that the €120/tonne rise in styrene this month needed to be passed on, and plus €90/tonne for SAN was therefore generally agreed upon.
However, there were a few divergences from this level, with a couple of manufacturers saying they managed to achieve plus €100/tonne rises on some accounts, while one trader said it had secured just €50–85/tonne increases, depending on grade.
Meanwhile, a buyer in southern Europe said it managed to secure a rollover for January, but in return, its supplier is asking for a €150/tonne hike in February.
Indeed, a further price increase is expected on most SAN contracts next month, as most expect styrene numbers to continue soaring upwards.
SAN players are waiting for the February styrene barge contract to settle before giving any firm indication of price direction, although one producer does not expect next month’s SAN rise to be as hefty as January’s.
($1 = €0.77)
For more on SAN visit ICIS chemical intelligence
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