Europe May SAN demand ‘solid’ - major producer

14 May 2013 17:33  [Source: ICIS news]

LONDON (ICIS)--Strong sales in high-end consumer goods and household appliances is helping to keep European styrene acrylonitrile (SAN) demand stable, sources said on Tuesday.

A major European SAN producer said it has seen consistently good demand over the last six months despite the poor European economic environment because of stable demand from a variety of end-user markets.

“Month after month [we see] very solid demand," the producer said, adding: "Appliances, packaging, white goods, all look relatively solid. That's what makes the difference, all segments good together at the same time.”

Finished goods manufacturers are also turning away from general purpose polystyrene (GPPS) to higher-quality SAN for aesthetic reasons.

“People are willing to pay more for innovation, for more beautiful objects,” the producer added, referring to finished goods markets such as capsule coffee machines and vacuum cleaners, which have started to use SAN in place of GPPS or polypropylene (PP). 

A second SAN producer said: “SAN demand is still fairly stable, the order situation is still very good.”

However, buyers have seen a slightly different story in May. Public holidays across Europe have seen previously stable demand drop off during the month, according to some sources.

“Demand is low. It could be the holidays, it is a bit of coincidence,” one buyer said, unable to pinpoint exactly why its demand levels had dropped in May.

Both buyers and sellers are now looking to June, and whether demand levels could improve further after the shorter working month.

($1 = €0.77)

By: Matt Tudball
+44 208 652 3214

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