The Stagnant Polymer Industry's Demand Weighs on the European Styrene Acrylonitrile Prices
- 22-Sep-2022 3:54 PM
- Journalist: Rene Swann
The polymer industry has seen a significant decline in demand due to the European energy crisis. The European markets for Styrene Acrylonitrile have long been on the verge of uncertainty. During the first half of September 2022, Styrene Acrylonitrile Copolymer prices decreased in the European countries due to diminishing domestic market demand and ample cargo supplies.
In Germany, Styrene Acrylonitrile prices fell due to lower-priced imports and falling feedstock Styrene and Acrylonitrile prices. Additionally, delayed domestic demand for styrene and its derivatives due to the impending recession has affected the product's pricing dynamics in the country. Similarly, production activity dropped last week, significantly impacting (Styrene Acrylonitrile) SAN prices in France. Feedstock Acrylonitrile and Styrene were sufficiently available in the market as the demand for these products declined in the last few weeks. Participants in the European market reported substantial volumes.
Additionally, In Belgium, Styrene Acrylonitrile prices have dropped this week, reaching USD 2700 per MT on September 16, 2022. The logistical problems exacerbate the country's economic crisis. Furthermore, the country's port congestion situation has worsened. Despite this, lower downstream automotive sector demand was a significant factor in the domestic market's decline in Styrene pricing.
Crude oil prices declined on Thursday due to heightened concerns that rising interest rates and inflation may adversely affect crude demand in the coming months. The current level of uncertainty and volatility across polymer value chains is sure to continue, and it may even get worse when the winter months bring about a rise in the seasonal demand for gas.
ChemAnalyst predicts that Styrene Acrylonitrile prices will continue falling in the European markets until Q4 since demand is not expected to improve enough to affect the market dynamics. Additionally, the current energy crisis will only get worse in Europe because the supply may not be enough to meet demand throughout the upcoming winter.