07 May 2013 17:01 [Source: ICIS news]
LONDON (ICIS) -- Buyers in the European styrene acrylonitrile (SAN) market are waiting for a better indication of the May feedstock acrylonitrile (ACN) contract price direction before concluding talks with their suppliers, sources said on Tuesday.
Some SAN producers have made initial offers of €20-30/tonne reductions for May SAN domestic prices, but some buyers do not want to finalise deals because they think ACN may settle at a substantial drop.
Lower ACN prices would allow SAN buyers to push for larger reductions in SAN domestic business.
“Two [suppliers] have offered €30/tonne down [on April business],” a SAN buyer said, adding it will ask for more if ACN drops substantially.
“We haven't heard a lot from the market. In waiting mode now to see what ACN does,” a producer said.
ACN buyers are targeting reductions of up to €100/tonne for May.
ACN producers are yet to set firm price targets. Nevertheless, they said they will aim to limit price reductions by as much as possible because of the need to restore margins.
The May styrene contract price settled at a reduction of €11/tonne.
($1 = €0.76)
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