11 June 2013 16:14 [Source: ICIS news]
The majority of SAN producers have targeted rollovers for domestic June prices because of the relatively modest increase in feedstock styrene.
“We have had no problems in implementing [a] rollover yet,” one SAN producer said.
“We are going for a rollover [from May prices],” a producer of compounding grade said.
However, Styron has announced a €40/tonne ($53/tonne) increase for all its SAN grades in June, stating the upwards move is “in response to the rising costs associated with the manufacturing of polystyrene and copolymers grades in Europe”, the company said.
Buyers have concluded some business at rollovers to increases of €20/tonne, depending on the grade, but are seeing a big push from Styron to achieve its targeted increase.
“Styron are very determined to increase by €20-40/tonne,” one buyer of both extrusion and injection moulding grade SAN said.
The arbitrage window with Asia remains open, with lower prices coming in from South Korean producers, players said.
Compounding grade material from Asia was available at €30-50/tonne below European prices, and injection moulding was available at €150-200/tonne below European suppliers’ prices, according to a European buyer.
A European producer said compounding grade material from Asia was available at €1,550/tonne FD Italy, according to its customers.
The supplier said that Asian producers may be choosing to sell excess material to European buyers at cost levels to keep production levels above 60%, rather than have to temporarily shut down production lines.
Demand in the European market is stable, according to the majority of players. SAN demand in Asia has been below expected levels because of weak sales of SAN-made finished goods in the European and US markets because of poor macroeconomic conditions.
($1 = €0.75)
|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