The Styrene Acrylonitrile (SAN) market in China showed a downward trend during the first two weeks of August 2025, with prices dropping by 0.37% in the first week and 1.50% in the second week, but a recovery is expected with a 2.2% increase in September and a 1.7% decrease in October.
Domestic SAN production remained stable in the first half of August, with manufacturing facilities operating at consistent capacities, aided by the availability of styrene as a feedstock to units. There were no disruptions in the operations of units, ensuring a smooth flow of SAN into the market. Manufacturers were cautious when managing their inventories in line with the decline in demand and avoided excess stockpiling after the restocking carried out in July.
In July, SAN production opted for a balance between the stable feedstock costs and the volatile demand, while the limited imports led to a competitive outlook for domestic pricing. This is likely to continue in September when demand supports the need for restocking, while in October, prices might be adjusted on account of fluctuations in the feedstock cost, influencing the moves of manufacturers.
Trading in the SAN market during August was subdued, with downstream buyers opting to rely on the inventory that they built in July, thus minimizing spot purchases. The abundant supply of feedstock and SAN, compounded with lower shipping costs of SAN to Western markets, added to the downward price pressure.
September is expected to see an increase in trading activity in line with the rise in the procurement of buyers in response to the peak season, with a 2.2% rise in the prices. In October, selective procurement and the optimized inventory levels across supply chains will likely lead to a price decline of 1.7%, reflecting a post-season decline in market activity.
In the packaging sector, the most significant driver of demand for SAN, output remained moderate in July for fast-moving consumer goods and industrial areas, but it was lower than the seasonal expectation. The moderate buying in August, post the procurement in July, added to the decline in prices of SAN.
The electronics sector sustained the SAN demand in July backed by export orders for consumer electronic devices and components, especially for protective casings, but the adjusted procurement cycles in August added to the decline in prices. In September, both the sectors are expected to increase the procurement of SAN through aggressive restocking, while in October; the post-season decline in procurement is likely to soften the prices.
The SAN market outlook continues to be dynamic. The price reductions in August were the result of the cautious buying and the availability of products, but the anticipated 2.2% price increase in September stems from the strong restocking and demand from packaging and electronics backed by optimal supply chains.
The 1.7% price decline in October reflects the softening of demand post-season backed by the expected variation in the feedstock cost. Abundant availability of SAN and sustained demand from the sector will maintain the balance across the market, supporting a competitive market till October 2025.
