21 February 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European February styrene acrylonitrile (SAN) commercial grade contracts settled up by an average increase of €100/tonne ($132/tonne) from January on the back of rising raw material costs, market players said on Tuesday.
The increase was achieved for most contracts, with the rise in prices attributed to the higher raw material costs of styrene and acrylonitrile.
SAN commercial grade contracts for February were mostly settled in the range of €2,140-2,260/tonne FD NWE, sources said.
One supplier has indicated that they may seek higher prices for March if feedstock costs continue to rise.
However, the price hikes are not likely to be as sharp as during the first two months of the year as the rise in feedstock costs may taper off, sources said. Buyers expect to be informed of supplier's price ideas for March later next week.
SAN buyers said they are keeping to their allocations for March as end-user demand is still maintaining at a healthy level. However, March negotiations may be tougher as buyers may be more reluctant to wholly accept another price increase. A clearer picture is expected to emerge by next week.
($1 = €0.76)
By Renee Lawrence
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