17 September 2013 23:59 [Source: ICIS news]
Some buyers had to accept increases of €80/tonne from suppliers who were unwilling to lower targets because of the need to protect margins following the €85/tonne and €55/tonne hikes in the September styrene and acrylonitrile (ACN) contract prices, respectively.
One buyer said it had to accept the €80/tonne increase because poor downstream demand meant it could not take additional volumes from its supplier, which would have allowed for greater bargaining power.
“[September is] not a strong month, not a lot of things to negotiate [with] at the moment,” the buyer said.
Some buyers decided not to purchase any SAN at the €80/tonne increase, preferring to move to the sidelines and manage on current inventory levels.
Other buyers had been able to negotiate slightly smaller increases with European producers because of access to cheaper Asian material on offer.
Sellers struggled to pass on any increases above that of the feedstock cost pass-through because September demand has been lower than forecast.
September SAN prices were assessed by ICIS at €2,055-2,100/tonne FD (free delivered) NWE (northwest Europe) for compounding grade.
($1 = €0.75)
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