14 November 2012 10:53 [Source: ICIS news]
LONDON (ICIS)--European demand for styrene acrylonitrile (SAN) has tailed off this month compared to October, market participants said on Wednesday.
“October was a good month, but November is quiet, we expect [demand] to be lower than October,” a distributor said.
Another distributor said November demand had decreased compared to October, and could fall by as much as 20-30% by December.
This was attributed to the ongoing macroeconomic problems faced by European countries, together with early end-user destocking activity and production shutdowns.
As well as the struggling European automotive industry, slowdowns in demand are now across the board, with sectors such as electrical appliances seeing reductions in the amount of SAN being purchased.
Lower demand has also influenced November SAN contract price negotiations. Producers who were considering offering reductions in November are now revising their figures and targeting mainly rollovers because their initial reductions would not be sufficient to stimulate demand.
“The price drop we would need to put on the table to trigger the demand is really huge,” a producer said.
With the feedstock styrene contract price only coming off €5/tonne in November, the likelihood of producers giving large reductions to buyers is slim.
($1 = €0.79)
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