Price and market trends: Europe SAN market looking for a boost

Players in the European styrene acrylonitrile (SAN) market are negotiating increases of €80-100/tonne for this month’s contracts, shortly after the March feedstock styrene contract settled €90/tonne higher, sources said on 2 March.

Some market participants were still unsure of the price direction for March and expected and more clarity the following week. SAN sources were more or less anticipating styrene to move further up in March despite the falling spot numbers both in Europe and Asia.

The supply issues the US styrene market is facing were among the main drivers of this increase, which is the fifth consecutive one from November 2016.

Meanwhile, February SAN volumes were on a very good level and March is expected to be another strong month based on order entry first indications.

European producers seem to be supported by the limited presence of Asian imports in the domestic market, sources said.

According to a buyer, Asian suppliers could not ship any material at all for March and the first shipments will be able leave for Europe around the end of April to beginning of May.

Nevertheless, other buying sources said that South Korean material was consistently available and easy to get. There was market consensus that it is quite risky to buy Asian material now as it is unclear if the price will still be beneficial in two months’ time when the volumes will be arriving in Europe.