16 October 2012 23:59 [Source: ICIS news]
Compounding grade was assessed at €1,960-1,990/tonne ($2,545/tonne-2,584/tonne) FD (free delivered) NWE (northwest Europe), commercial grade at €2,200-2,340/tonne FD NWE and specialty grade at €2,430-3,160/tonne FD NWE, according to ICIS.
Market participants agreed that demand was ‘subdued but stable’, as ongoing weak macroeconomic conditions being seen across the globe are reducing end-use market buying confidence. Consumers are buying product, but only enough to meet their contracts and keep production going.
There are also concerns that poor economic conditions could exacerbate the seasonal drop-off in demand in November and December, with some destocking activity already taking place.
Producer and distributors are reluctant to be left with large inventories of higher-priced stock at the end of the fourth quarter. A distributor said it was offered a discount on any additional material it was willing to purchase in October.
Asian product is still available to European buyers, which put added pressure on suppliers to keep prices down in October. However, a producer said the amount of Asian material available was decreasing, but could only speculate why.
A smaller rise in the October contract feedstock styrene price compared with September, coupled with an initial €20/tonne reduction in acrylonitrile (ACN), meant that producers could not attribute any October SAN increases to higher feedstock costs.
Supply is good and there was product available for purchase as and when needed.
SAN is used in household and sanitary applications, office articles, cosmetic packaging, transparent covers, lighters, sanitary applications and battery housings.
($1 = €0.77)
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