Europe SAN producers target substantial increases for August

06 August 2013 17:35  [Source: ICIS news]

LONDON (ICIS)--European styrene acrylonitrile (SAN) producers have responded to rising feedstock costs by targeting August price increases of €40-60/tonne ($53-80/tonne), sources said on Tuesday.

The €47/tonne increase agreed for the August styrene contract was more than some SAN market participants had expected. In addition, the €50/tonne rise in the propylene contract may drive up acrylonitrile (ACN) prices.

A SAN producer targeting plus €50-60/tonne said it is aiming to improve its margins slightly, and noted that, while many buyers in southern Europe are on holiday this month, demand in other regions is comparatively resilient.

A second producer said it is targeting plus €40/tonne, but accepted that the presence of competitively priced Asian imports means that it is unlikely to achieve its target in all cases.

A producer that had been planning to maintain stable pricing said it will target increases of €50/tonne for August.

The source noted that July sales volumes were good and indicative of moderate-to-high demand. Order books are quite full for August, the source added, even though the peak summer holiday season is under way in some countries.

A reseller confirmed that its injection moulding SAN prices have risen by €50/tonne for August. The source said demand is acceptable given the time of year, while availability is not a problem.

A buyer said it has yet to conclude any August prices, but has received offers in line with feedstock price movement.

A compounder said its August prices are still under discussion and producers are attempting to pass on their higher feedstock costs. Prices will probably increase, the source acknowledged, but not by as much as €40-50/tonne, because demand is low this month.

The compounder indicated that Asian imports are priced at $1,900/tonne CIF (cost, insurance & freight) Europe for injection moulding grade.

($1 = €0.75)

By: Samuel Weatherlake
+44 20 8652 3214

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