15 October 2013 23:59 [Source: ICIS news]
Producers had to lower prices following the €92/tonne drop in the October feedstock styrene monomer (SM) contract price. An initial feedstock acrylonitrile (ACN) settlement for October was confirmed at a reduction of €40/tonne, adding further pressure to SAN producers to lower prices.
Two producers confirmed reductions of €80/tonne, one having to lower its prices from an initial targeted reduction of €60/tonne for October.
“[The market] is not very brilliant, the price [for October] is minus €80/tonne,” a producer said.
“We initially wanted to decrease by €60/tonne,” a second producer said, adding: “the situation has not been very good in terms of volumes… demand is just not there.”
Another producer said it had limited its reductions to minus €50/tonne from September levels, but this was not widely seen across the market.
Several SAN buyers were successful in pushing for large reductions of up to €80/tonne, effectively bringing prices back to August levels because of stable-to-soft demand.
“We have not bought any big quantities for October,” one SAN buyer said.
A couple of producers said that October demand was not at expected levels, with no clear reason as to why buyers were not taking more volumes.
October SAN prices were assessed by ICIS at €1,985-2,020/tonne FD (free delivered) NWE (northwest Europe) for compounding grade, and €2,250-2,385/tonne FD NWE for commercial grade.
($1 = €0.74)
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