Europe July SAN contract prices down by €90/tonne

24 July 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European styrene acrylonitrile (SAN) July contracts have settled down by €90/tonne ($109/tonne) as a result of lower feedstock costs, buyers and sellers said on Tuesday.

Compounding grade was assessed at €1,800-1,810/tonne FD (free delivered) NWE (northwest Europe), commercial grade at €2,040-2,160/tonne FD NWE and speciality grade at €2,270-2,980/tonne FD NWE, according to ICIS.

July contract prices for feedstock styrene settled down by €115/tonne at €1,232/tonne because of lower raw material costs.

Meanwhile, the majority of European acrylonitrile (ACN) July contract negotiations have finalised but buy and sell ideas remain far apart.

Producers of ACN, which is also a feedstock for SAN, said they have finalised contracts at a reduction of €170-190/tonne, broadly following the €170/tonne reduction in the upstream propylene July contract price.

There was some confirmation from the buy side of ACN settlements at reductions of €180-190/tonne. Some buyers, though, said they have concluded July ACN contract negotiations with a greater reduction than €200/tonne.

Pending further confirmation the above published ACN range continues to represent June business.

SAN demand has increased slightly despite the approaching summer holiday period, with one distributor saying July was the strongest month for demand seen so far this year. The increase was due to expectation of feedstock price increases in August rather than renewed confidence in the end user market.

Players expect demand to drop in August when the traditional summer holiday period lull begins, especially in the south.

Supply is good with no production problems or outages reported.

No Asian spot cargoes have been offered this week. Increased demand from China and rising feedstock costs in the region have made exporting product to European markets less attractive for Asian producers.

($1 = €0.82)

By: Matt Tudball
+44 208 652 3214

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