03 December 2013 11:43 [Source: ICIS news]
LONDON (ICIS)--Switzerland-based plastics manufacturer Styron Europe GmbH announced in a press release on Tuesday morning that it is targeting a €30/tonne price increase in styrene acrylonitrile (SAN) resins for December.
The company said the increases are effective immediately, or as existing contract terms allow.
“We are announcing +€30/tonne [$41/tonne] on SAN for December,” a source from Styron said. “Acrylonitrile (ACN) is expected to rise +€30/tonne, which coupled with the styrene monomer (SM) contract price increase of +€10/tonne, necessitates us to seek increase.”
The source added: “SAN demand is quite good, November was our strongest month since June, and December orders are solid.”
The rise in the cost of feedstock styrene in December, and the expected December price increase in feedstock ACN – on the back of higher propylene costs – is putting upward price pressure on the SAN industry.
However, December SAN demand is typically slow owing to the holiday period.
“I expect that we can keep a rollover,” a buyer said. “It was only a €10/tonne rise for styrene. For December, it’s going to be weak, I don't think they will reduce prices, but I don't see there being an increase. Maybe January there will be an increase.”
The buyer added that price negotiations were ongoing, but said there could be some agreement reached before the end of the week.
Another buyer said: “It is still early days and no real business has been concluded. Probably everyone will end up at a €10/tonne [increase] at the end of the day. We do not see a rush to the buying table at the moment.”
European domestic prices for SAN were assessed down by €50-60/tonne in November, on the back of lower styrene and ACN costs.
Follow Helena on Twitter
($1 = €0.74)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections