10 September 2013 15:55 [Source: ICIS news]
LONDON (ICIS)--Compounders and distributors of styrene acrylonitrile (SAN) in Europe are not seeing the pick-up in demand expected in September following the August summer holiday period, market participants said on Tuesday.
While there has been some improvement on last month’s demand levels as manufacturers in parts of Europe return to work after August vacations, buyers of SAN have noticed that their current September orders are not as high as expected.
“The big issue is lack of demand,” said one reseller in the cosmetics market.
“[There is] no demand from customers,… hardly any feedback from the market,” the buyer of injection moulding grade SAN added.
It is not just SAN that seems to be hit by the post-holiday blues in terms of demand, but also polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) as well. “It's [the market] quite stable, but it's not very exciting,” the source concluded.
A buyer of compounding grade SAN said that European producers are also seeing the pinch of a hesitant consumer market.
“[European SAN producers] say the September forecast is not for a bad month, but not as good as expected.”
Low consumer demand is causing some SAN buyers to hold off price discussions with their suppliers for September business until they see a pick-up in end-use market order levels.
Talks between producers and buyers are ongoing, with producers targeting substantial increases on August prices. Styron announced a €90/tonne increase on its SAN range at the beginning of the month, followed by an announcement of €90/tonne ($120/tonne) SAN increase from Spanish producer Elix this week.
($1 = €0.75)
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