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