Will brisk demand from downstream sectors strike the Styrene Acrylonitrile price

Styrene Acrylonitrile is transparent, a frangible copolymer having Styrene and acrylonitrile as its raw materials. The production cost of Styrene has been proportionally affected by the increasing prices of crude oil because of the continuing war between Russia and Ukraine. As per the ChemAnalyst data, Styrene Acrylonitrile (SAN) prices were assessed at $2000/ton, FOB Busan, South Korea, on 1st April.

In the Asian market, the feed prices of Styrene spiked up due to a hike in benzene and ethylene production costs. Benzene and ethylene are the upstream products of Styrene. As a result, the Styrene Acrylonitrile (SAN) prices remained on an uptrend as the demand from downstream industries such as packaging, home, electronic appliances, and consumer goods were strong. Moreover, with the flourishing cosmetics and healthcare industries in the Asian market, the demand for SAN has surged. The packaging used to store cosmetics products requires SAN as the raw material because of its better heat resistance and good tensile strength. Another factor driving the prices of SAN is the implementation of lockdown in China after the outburst of the Omicron virus. Since China is following a zero-covid policy, the logistics and manufacturers have temporarily halted the productions leading to a supply shortage in the domestic market. In the European market, Styrene Acrylonitrile (SAN) prices remained high as the upstream Styrene and Acrylonitrile prices inflated due to hiked crude oil prices. Supply chain disruption is the root cause of the conflict between Russia and Ukraine. Automotive and home appliances sectors in the US market have forced the producers of Styrene Acrylonitrile to increase their operational rate and production cost, showing its direct effect on SAN prices. Other sectors such as construction and houseware use SAN in less quantity; hence, the prices of SAN may get affected sporadically due to these industries.

According to ChemAnalyst, Styrene Acrylonitrile (SAN) prices may remain buoyant in the upcoming weeks. Feedstock styrene prices may oscillate along with the acrylonitrile prices due to the crude oil prices showing its effects on the prices of Styrene Acrylonitrile.