Europe SAN buyers expect May price drops on feedstock cost falls

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)

By: Matt Tudball
+44 208 652 3214

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