Europe Nov SAN contracts settle at a rollover to €20/tonne reduction

22 November 2012 16:45  [Source: ICIS news]

LONDON (ICIS)--European styrene acrylonitrile (SAN) November contracts have settled at a rollover to €20/tonne reduction compared with October, market participants confirmed on Thursday.

Compounding grade was assessed at €1,960-1,970/tonne FD (free delivered) NWE (northwest Europe), commercial grade at €2,200-2,320/tonne FD NWE and speciality grade at €2,430-3,140/tonne FD NWE, according to ICIS.

Buyers achieved price reductions in some cases depending on distributor, and where the buyer’s October contract price was previously settled. Reductions above €20/tonne were given to consumers who had higher prices in October because they had not taken full volumes.

Other buyers negotiated reductions based on the small €5/tonne drop in the November styrene contract price, and the large €40-45/tonne fall in the feedstock acrylonitrile (ACN) November contract.

Month on month, SAN dropped by approximately 20-30%, some sources said.

“[The market] is quieter everywhere, down a bit on this time last year,” a buyer said.

Weak macroeconomic conditions, combined with consumers closely managing their stock levels ahead of year-end, are keeping consumers purchasing on a hand-to-mouth basis.

Producers are also seeing relatively quiet demand, though not as much as on the buyer side, speculating that some buyers may already purchasing product for December.

Market participants expect that most end-use production will close down early in December because of weak demand.

SAN is used in household and sanitary applications, office articles, cosmetic packaging, transparent covers, lighters, sanitary applications and battery housings.

($1 = €0.78)

By: Matt Tudball
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly