Europe September SAN contract prices settle €50-70/tonne up

18 September 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European styrene acrylonitrile (SAN) September contracts have settled at an increase of €50-70/tonne ($65-92/tonne), buyers and sellers said on Tuesday.

To reflect this change, compounding grade was assessed by ICIS at €1,960-1,990/tonne FD (free delivered) NWE (northwest Europe), commercial grade at €2,200-2,340/tonne FD NWE and speciality grade at €2,430-3,160/tonne FD NWE.

The price increase was as a result of an increase in September contract feedstock costs.

September styrene contract prices rose €43/tonne to €1,410/tonne. Rising spot prices and the market being taken by “surprise” by tight availability during the past couple of weeks supported the September increase.

An initial ACN September contract has been settled at an increase of €120/tonne. The rise was attributed to the €105/tonne hike in the feedstock propylene September contract price.

Increases beyond the propylene cost pass-through were caused by producers’ need to increase margins. Although other players were yet to finalise September ACN contracts, the majority expect to conclude negotiations at around a €120/tonne rise.

Views on demand in the European SAN market remain mixed. Producers see stable demand because of on-going re-stocking following the August summer holiday period.

However, consumers are seeing the end-use market suffer from ongoing weak macroeconomic conditions, causing end-use buyers to adopt a hand-to-mouth buying pattern in September, only purchasing quantities of product needed in order to keep production running. 

Supply is good and product is available as and when needed.

($1 = €0.76)

By: Matt Tudball
+44 208 652 3214

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