18 June 2013 23:59 [Source: ICIS news]
Correction: In the ICIS story headlined “Europe June SAN contracts settle at a rollover to slight rise” dated 18 June 2013, please read in the third paragraph … became more costly to use in June … instead of … became cheaper to use in June ... A corrected story follows.
LONDON (ICIS)--European styrene acrylonitrile (SAN) June domestic prices were assessed at a rollover to an increase of as much as €20/tonne ($27/tonne), reflecting the rise in raw material costs this month, market players said on Tuesday.
Compounding grade SAN was assessed at €1,975-2,005/tonne FD (free delivered) NWE (northwest Europe), commercial grade at €2,215-2,355/tonne FD NWE and speciality grade at €2,445-3,175/tonne FD NWE.
Raw materials used to make SAN, such as styrene and acrylonitrile (ACN), became more costly to use in June. The June European styrene barge contract was settled at €1,414/tonne FOB (free on board) ARA (Amsterdam Rotterdam Antwerp), an increase of €14/tonne from the previous month. An initial settlement of ACN for June was at an increase of €15/tonne.
SAN sellers in Europe were originally seeking a rollover to increases of €40/tonne for June domestic prices. A rollover level for June was easy to push through, said sellers who noted there was more resistance to accepting a price hike.
One European buyer in the compounding sector said sellers were happy to agree to a rollover for June because of competition from non-European sellers who are offering material at competitive levels.
“The European sellers made no mention of getting higher prices this month,” one SAN end-user said. “There is a lot of supply around because the [South] Korean suppliers are very aggressive.”
South Korean sellers have agreed with their European buyers a price decrease of minus €20/tonne for SAN compounding grade material for June business, according to one European consumer.
Other European consumers agreed to increases of between €10-20/tonne for June while some end-users are still negotiating, determined to settle at a rollover from May.
SAN sellers in Europe are optimistic that demand will pick in the second half of the year on condition that the European economy starts to show signs of recovery. SAN supply is cited as balanced in Europe, supported by steady demand.
June is usually a good month for SAN sales, suppliers said, as buyers want material to cover orders just before the summer holidays. Demand for SAN is expected to revive again in September, market sources said.
SAN is used in household and sanitary applications, office articles, cosmetic packaging, transparent covers, lighters and battery housings.
By Renee Lawrence
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