23 April 2013 16:48 [Source: ICIS news]
LONDON (ICIS)--European styrene acrylonitrile (SAN) prices in May could drop by €60-70/tonne ($78-91/tonne) because of expected feedstock price reductions and weakening demand, sources said on Tuesday.
Players agree it is still too early to get a clear indication of styrene and acrylonitrile (ACN) May contract price directions, but weak demand and oversupply in the styrene market coupled with talk of substantial drops in propylene are leading some SAN buyers to predict reductions of €60-70/tonne in May.
“Everyone is waiting for the drop in May … [there is talk of] about three digits [coming off] propylene [in May], so it will have an impact on SAN,” a SAN buyer said.
Producers are being more cautious with price predictions for next month.
“[We have] no price estimations for May yet. We need to wait for further styrene feedback,” a SAN producer said.
SAN prices will also come under pressure if demand levels drop during next month due to four public holidays in countries across Europe throughout May.
Manufacturers may take advantage of the possible lull in demand in the SAN market during next month, deciding to extend production shutdown periods in the days before and after the May public holidays.
However, June demand may increase as a result if buyers return to the market and decide to re-stock.
($1 = €0.77)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections