01 October 2013 17:26 [Source: ICIS news]
LONDON (ICIS)--European styrene acrylonitrile (SAN) buyers are waiting for October price offers from producers and are expecting reductions following a significant fall in the styrene barge contract, they said on Tuesday.
The October styrene monomer barge contract was agreed down by €92/tonne earlier in the day, settling at €1,450/tonne ($1,959/tonne).
One buyer of compounding grade said it had no offers from suppliers, but it would expect prices to return to August levels, following September's increase of €65-80/tonne.
“Deals have not been concluded yet. Forecast is that they'll [producers] come back to August [price] level,” the buyer said.
A second buyer said it would expect any SAN drops to reflect the downward movement in feedstocks.
Most producers have not yet announced October targets, which are expected to come later in the week.
A producer said it will not pass on the full feedstock reduction because it wants to strengthen its margins, which have been eroded over the last couple of months' price movements.
“Since we have suffered delta margin losses net in the last couple of price rounds we certainly do not aim to forward the entire feedstock relief,” the producer said.
($1 = €0.74)
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