For the Quarter Ending June 2023
North America
In the US market, Styrene Acrylonitrile (SAN) has experienced a noticeable declining trend within the entire second quarter of 2023, and at the beginning of Q2 SAN market showcased an inclined trend in the wake of the rise in the consumption rate from the major construction and packaging industries, with its procurement activities and commodity export also increasing. During this month, healthy demand from the international markets also concluded in vigorous trading activity. The market remained stable during the month of May as market participants were not looked interested in furthermore procurement activity. Additionally, In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and provoked the buyers to hold back from placing large orders. However, in the month of June, the cost of Styrene Acrylonitrile (SAN) decreased as companies had already procured a substantial amount of the product in the previous month. Its Transactions remained challenging as purchasing activities remained at its lower hand. Businesses and consumers remained hesitant to commit to long-term orders, leading to decreasing demand. However, despite this, a consistent inflow of material left buyers hesitant due to high inventories as trading activities for this commodity remained subdued. Additionally, the declining styrene prices had a persistent influence on market participants leading them to maintain weaker prices in order to ensure affordability. Overall, during Q2, the SAN FOB Houston (USA) showcase a decrement of 4.4%.
APAC
In the Asia-Pacific region, the Styrene Acrylonitrile SAN CFR Qingdao (China) market has witnessed a notable decline of approximately (9.7%) during the second quarter of 2023. The market initially remained stable due to moderate demand from the associated downstream construction and packaging industries, but weak cost support from feedstock Styrene and Acrylonitrile prices started manipulating market participants to lower the prices for this commodity. A decrease in demand from prominent sectors, such as the packaging and personal care industries, also triggered its market. As the second month of Q2 unfolded, the SAN started showing a vanishing trend in the wake of sluggish demand from downstream businesses. However, the month of June brought another challenge. Weak feedstock Styrene prices posed additional pressure on the SAN market sentiments. Weak crude oil prices also played a pivotal role in supporting the downward trajectory of SAN prices in the Chinese region. Furthermore, demand from downstream industries experienced a further decline in China. Despite attractive spot price offers, buyers approached with caution, as an abundance of affordable inventories within the domestic market influenced their decision-making. This led sellers to resort to discounts to stimulate transactions.
Europe
In the European market, the overall market fundamentals of Styrene Acrylonitrile (SAN) remained bearish during the entire second quarter of 2023. The price of SAN FD Rotterdam (Netherlands) showcased a decrement of roughly 2.3% during the entire Q2 time. In the first month of Q2, the high demand for materials from the construction (insulation) and packaging sector resulted in healthy trading activities. Despite feeble feedstock Styrene and Acrylonitrile prices, procurement of the product remained high. In the month of April, the market fundamentals remained moderate as businesses had already procured a substantial amount of the product in the previous month. Furthermore, in the month of June, an increase in the inventory level in the domestic ports, consequently opening the doors for the suppliers to offer lower bids for the commodity and force sellers to provide discounts on the material. As continuously declining feedstock styrene and acrylonitrile cost manipulated the ventures not to increase SAN prices furthermore to keep the prices economical. While during this month, there are many more factors that influenced this declining trend, such as weak requests from downstream Construction sectors, the prevailing economic uncertainty and fears of a recession continued to shape market sentiments, contributing to the cautious atmosphere within the industry.
For the Quarter Ending March 2023
North America
In the quarter ending March 2023, the prices of Styrene Acrylonitrile (SAN) were affected by low demand from the downstream cosmetics industry and high stock levels, maintaining a general downward price trend. The dynamics of U.S. Styrene Acrylonitrile (SAN) prices this quarter were still influenced by low-cost international supply and insufficient domestic demand. The automobile industry's and other competing sectors' unmodified purchasing intentions for the commodity in the U.S. market further influenced the decline in Styrene Acrylonitrile (SAN) pricing. The Styrene Acrylonitrile (SAN) businesses were under pressure from the domestic U.S. market due to high stock levels, even as import costs were falling.
APAC
Styrene Acrylonitrile (SAN) prices varied very slightly in the three months ending in March 2023 as a result of the erratic nature of upstream crude oil prices. In the midst of China's economic outlook's gradual improvement, market players exhibited a wait-and-see attitude. Additionally, the price of Styrene Acrylonitrile (SAN) in the APAC market during the first quarter of 2023 was impacted by the lack of downstream demand from the cosmetics sector. Market participants destocked inventories at lower margins as a result of the country's slow economic recovery, which had an impact on the product's final discussion in the first quarter of 2023.
Europe
The first quarter of 2023 saw no change in the pricing trend for Styrene Acrylonitrile (SAN) in the European market, which was supported by the minimal pressure on production costs as exporting nations' manufacturing costs stayed stable. Production fell in the producing countries as a result of transportation delays induced by European Union strikes and a tempered consumer demand mood. Additionally, in the first quarter of 2023, downstream producers continued to offtake products at a moderate rate. The declaration by OPEC that the supply of crude oil will be curtailed by the end of March 2023 affected European businesses, and it also had an impact on the April negotiations for Styrene Acrylonitrile (SAN).
For the Quarter Ending December 2022
North America
Styrene Acrylonitrile prices in the US market dropped significantly during the fourth quarter of 2022, indicating unfavorable market sentiments due to shifting upstream crude oil prices in the North American market. The poor consumer consumption and the weak demand from the downstream derivatives industry added to the producers' bearish sentiments. Additionally, domestic market purchasing activity remained low since the downstream plastic industry's demand for SAN was constrained. Given that inventories were substantial and imports were affordable, the US market's significant demand was met while supply was moderate. Prices for SAN were estimated at USD 2640/MT FOB Houston (USA).
APAC
Styrene Acrylonitrile prices plunged in the Asian market during the fourth quarter of 2022 on the back of falling feedstock Styrene prices. Demand in the domestic market remained subdued, and despite the festivities, the price of Styrene Acrylonitrile remained unchanged in India, as did offtakes. Similarly, in other Asian countries, supplies remained sufficient, and demand was unaltered. Hence the market activity remained gloomy. Furthermore, the import availability of the material remained steady in Indian ports from Korea, China, and other exporting countries. Thus, inventory levels have been termed stable throughout the quarter. In the Chinese markets, SAN prices also consolidated on a lower level as feedstock Styrene and Acrylonitrile hovered lower. SAN prices were assessed at USD 1506/MT CFR Qingdao (China)
Europe
Styrene Acrylonitrile prices in the European market remained flat as demand remained sluggish from the downstream. Prices for Styrene Acrylonitrile remained reliant on upstream crude and fundamental feedstock Styrene and Acrylonitrile, which remained low, further driving down the manufacturing costs. Additionally, owing to decreased production rates, the product supplies remained weak, and inventory levels remained low. Consequently, Market participants assert that since the production costs of European manufacturers have reduced and their products are widely available, this has a substantial impact on their profit margins. SAN prices were assessed at USD 2520/MT FD Antwerp (Belgium).
For the Quarter Ending September 2022
North America
Mixed sentiments were seen for SAN in the North American region in Q3 2022. The automotive industries were on track, which resulted in ongoing demand from these industries. Furthermore, the market emotions for styrene and acrylonitrile in the USA were influenced by changes in the pricing of feedstock, styrene, and acrylonitrile on the domestic market. Due to the continued decline in global oil prices as recession fears and supply shortage worries battled, the price of styrene and acrylonitrile decreased by more than 4.5% in the second half of the quarter. The market sentiments of Styrene Acrylonitrile in the US market are driven by its applications in houseware and automotive, as Styrene Acrylonitrile is rigid and heat resistant.
APAC
In Q3, the prices of Styrene Acrylonitrile continued to follow the retardation in China as the market remained quiet. Typhoon Chaba destroyed the country's commercial hubs, proportionally impacting the prices of Styrene Acrylonitrile. Major manufacturers had to shut down the plant on a temporarory basis for maintenance. The decline in productivity rate and slow demand from downstream household appliances such as refrigerators and electronic appliances became the key factor for the decline in prices in the domestic market. Stagnancy in the prices of Styrene Acrylonitrile in the Indian market was witnessed during the third week of July. The demand for downstream medical devices, along with electronic appliances, remained stagnant in the Indian market. The feedstock, Styrene prices kept on declining in India, impacting the production cost of SAN in the domestic market. However, demand for downstream medical devices and electronic appliances in the Indian market remained flat. SAN prices for CFR Qingdao in the Chinese region settled at USD 1700/MT as a ripple effect.
Europe
Styrene Acrylonitrile (SAN) prices fluctuated during Q3 2022 in the European market; in the first half of the quarter, prices rose, while in the second half, prices fell. As ships stacked up on the dock, the port sat still, widening the domestic market's disparity between supply and demand. Supply was scarce from the manufacturers to meet the firm's offtakes of the goods in the domestic market. With shallow rivers for barge traffic exposing weak inland supply channels, an under-invested railway system that cannot handle the increased capacity, and seaports still loaded with freight, Germany's logistical issues compound the country's economic recession. Despite this, the decline in the pricing of Styrene Acrylonitrile on the German market was primarily caused by a decline in demand from downstream automotive sectors.
For the Quarter Ending June 2022
North America
In the second quarter, the prices of Styrene Acrylonitrile remained constant in the North American market. As compared with Q1, market sentiments of Styrene Acrylonitrile in Q2 were sluggish on the back of slow demand from downstream sectors. Automotive and packaging sectors remained silent throughout the quarter as automotive manufacturers faced chip shortages from supplying countries. Supply shortage and sluggish demand from end-users restricted the automotive sector's operational flow, which proportionally impacted the prices of Styrene Acrylonitrile in the regional market. Other facets governing the prices are the feedstock styrene and acrylic acid prices in the regional market governing the market sentiments of Styrene Acrylonitrile. The price quotations were observed at USD 3510 per MT, FOB Houston in June towards the quarter end in the USA.
Asia-Pacific
The overall market trend of Styrene Acrylonitrile dwindled in the second quarter in the Asia-Pacific market. Drastic fall was witnessed towards the quarter-end as the Asian market remained quiet on the back of the restricted movement. Chinese market remained muted as lockdown curbs were reimposed, halting the operational rate of Styrene Acrylonitrile. Immobility in the market led to a decline in demand from downstream, automotive, and packaging sectors, consequently impacting the market dynamics of Styrene Acrylonitrile in Asia-Pacific. The movement of cargo was stagnant. This led to the availability of enough inventories to cater to the slow demand from the domestic market. As a ripple effect, the market dynamics were slow in the Asian market.
Europe
During the second quarter, the prices of Styrene Acrylonitrile were on the upper hand in the European market. Significant players of Styrene Acrylonitrile quoted the prices at USD 3031 per MT, FD Hamburg, Germany, towards the end of the quarter. The inflated commodity occurring in the regional economy was the key factor governing the market sentiments of Styrene Acrylonitrile. As a result, styrene and acrylic acid prices also elevated in the regional market during Q2 in Europe. As stated by significant manufacturers, skyrocketing feedstock prices and electricity prices consequently raised the production cost of Styrene Acrylonitrile in the European market. Furthermore, the demand from the cosmetic and packaging industries was also high, governing the market sentiments of Styrene Acrylonitrile in the European market.
For the Quarter Ending March 2022
North America
The prices of Styrene Acrylonitrile in the North American market in the first quarter of 2022 witnessed a hike of 4% as compared to Q4 of 2021. In the first quarter of 2022, the feed, styrene and acrylic acid prices escalated due to surge in prices of crude oil. The outlook from downstream sectors such as packaging, construction, furnishing, electronic appliances was the driving force for the positive variation in the North American market. The prices of styrene Acrylonitrile were ranging from USD3380/ton FOB Houston, USA in the month of January to USD3470/ton, FOB Houston, USA towards the quarter ending March 2022. These factors have affected the market sentiments of Styrene Acrylonitrile in the North American market during the first quarter of 2022.
Asia Pacific
In the first quarter of 2022, the market sentiments of Styrene Acrylonitrile in Asia-Pacific region observed a growth of 16% as compared to Q4 of 2021. The prices ranged from USD1947/ton CFR Shanghai in January 2022 to USD2000/ton, CFR Shanghai China towards the end of the first quarter of 2022. The prices of Styrene Acrylonitrile moved briskly due to the conflict between Russia and Ukraine which consequently increased the feed (styrene and acrylic acid) showing its proportional effects on the Asia-Pacific market. Flourishing cosmetics and healthcare industries in the Asian market have boosted the prices of Styrene Acrylonitrile. Moreover, after the implementation of lockdown in China, the manufactures were forced to terminate the production of Styrene Acrylonitrile temporarily, consequently increasing the prices of Styrene Acrylonitrile in Asia-Pacific.
Europe
In the European market, the prices of Styrene Acrylonitrile observed a slight growth of 1% in Q1 of 2022 as compared to Q4 of 2021. In January, the prices were USD3210/ton, FD Rotterdam and landed at USD3110/ton, FD Rotterdam, Germany in the quarter ending March 2022. Escalating prices of feed Styrene and acrylic acid resulted in high prices of Styrene Acrylonitrile owing to the increased prices of crude oil. These factors resulted in high production cost of Styrene Acrylonitrile in the European market consequently increasing the prices. Supply disruptions were faced by the major manufacturers of Styrene Acrylonitrile as trade routes were suffered due to Russia-Ukraine war.
For the Quarter Ending December 2021
North America
In North America, the demand of Styrene Acrylonitrile remains robust in October with slight declination in the proceeding months. Feedstock Styrene and Acrylonitrile prices also remained surged throughout the quarter. The use of Polystyrene and SAN in the downstream industries remain strong with increase in consumption of the product. With the increasing demand of Acrylic fibres further increase the prices. INEOS Nitriles sales for Styrene Acrylonitrile was observed to be high with increase in sales volume. However, towards the end of the quarte the market was affected by the upcoming New Year festive which slows down the market and the downstream enterprises decreases its production rate due to feeble demand from the end user consumers.
Asia Pacific
In Asia Pacific region, the prices of SAN remain strong in this quarter compared with Q2 and Q3. In India, the prices of SAN were maxed out on 29th October with the price trend of $2554/ton Ex-Depot Vadodara. The feedstock prices remained weak in this quarter as the Benzene prices were reduced, and market trading activities went weak due to ample supply. But with this, the increase in demand from the downstream sector had kept the prices tepid in the region. In China, the SAN market was stabilized to the lower end in this quarter as feedstock Styrene prices in East and South China fluctuated by narrow range while prices in North China came down under downward pressure from increasing supply from typical low demand amid cold weather towards the end of the quarter.
Europe
In Q4, storing of SAN inventories and oversupplies dropped down the costs in Europe. In Germany, sentiment highlighted be imbalanced with feeble demand. Expansive creation edges have yet addressed the extra cost of SAN production, drove by basic creation breaks in the final quarter that left SAN inventories unstable. This reduced interest saw benzene stocks grow reliably. Downstream enterprises were operated moderately with sufficient stock and deterred demand from the end user.
For the Quarter Ending September 2021
North America
In the North American region, rising feedstock prices in the wake of plant shutdowns due to hurricane Ida and increasing energy feedstock prices globally have culminated in limited production and a substantial spike in the prices of Styrene Acrylonitrile (SAN) during Q3 3021. AmSty, a leading producer of polystyrene and styrene monomers, shut down its styrene plants in Louisiana in the light of peaking hurricane season. This crippled the raw material supply which exacerbated the production of SAN. Demand has been on the rise as the downstream sector led by the consumer goods industry kept the consumption numbers strong throughout Q3.
Asia Pacific
The prices of Styrene Acrylonitrile rose effectively in the 3rd quarter of 2021 across the Asia Pacific region. The critical shortage of key raw materials and increased feedstock prices compelled SAN manufacturers to increase their production costs in order to maintain their profitability during Q3. In the Indian market, delayed deliveries due to crisis of shipping containers dented the overall market sentiments, while demand from the domestic automotive sector surged consistently in the country. Following an uptrend, SAN prices significantly escalated from USD 1673/MT to USD 2141/MT in India during Q3 2021. However, crippled supply activities of semiconductor chips are restraining the actual growth of the automotive sector in the global market.
Europe
The European market showcased an upward trajectory in the pricing trend of Styrene Acrylonitrile in quarter 3 of 2021. Demand remained strong from the downstream automotive and electronics sectors around the region during Q3. Several producers explained that force majeures and other market abnormalities made it difficult for them to enter into long term supply contracts. Soaring feedstock and freight charges further exacerbated the increased prices of SAN.
For the Quarter Ending June 2021
North America
The SAN supply outlook remained persistently tight despite several producers returning back onstream from the winter storm disruptions. The demand was firm amid tight inventory levels and disrupted supply chains continuing into early Q2. Ahead of the easing pandemic-related restrictions and mass vaccination programmes, the U.S. SAN market outlook appeared to be strengthening with the rebound in the automotive sector. However, poor availability of semiconductor chips restrained the overall sectoral demand. Feedstock Acrylonitrile and Styrene continued to remain bullish, thereby maintaining somewhat pressure over the producer’s margins. Demand across most major end segments, including the electronics gained pace as manufacturers looked to rebuilding inventories following the storm to cater to strong consumer demands.
Asia Pacific
The Chinese SAN market was heard consolidating at low levels for a larger part of Q2 under a combined influence of low raw material Styrene pricing and stable demand. However, firm Acrylonitrile reduced the possibility of major decreases in June. Several players reported constrained growth of the appliance and automotive sector due to global chip shortage. Indian offers for Styrene Acrylonitrile (SAN) were under the demand pressure due to limited offtakes from automotive segment, which is a major driving factor of the country’s SAN market. In addition, demand from consumer goods sector oscillated within a narrow range due to strict movement restrictions in several Indian states. Offers for SAN in the Indian market were assessed around USD 1630/mt in May, with the price curve showing a deep trough in April-June timeframe.
Europe
SAN offers showed some gains in Q2 with producers stating volatile raw material pricing as the key factor regulating the price trend. The European SAN industry encountered extreme tightness in the feedstock Acrylonitrile supply and witnessed acute volatility due to Styrene monomer pricing. Prices remained firm for a larger part of Q2 due to tight raw material supplies. Manufacturing in the UK picked up at great pace as easing lockdown measures propped up the consumer demand. Strong demand from the automotive and electronics sector lifted the hopes of regional SAN producers. In addition, some producers were eyeing on the upcoming Styrene capacities in Asia to ensure better availability for its feedstock chemicals.
For the Quarter Ending March 2021
North America
Freezing winter snapped the overall production of several feedstock chemicals across the region, during Q1 2021. Demand for SAN across the region remained strong throughout the quarter, although the supply remained in a narrow range. Critically low supply of feedstock Acrylonitrile and Styrene amidst consistently strong demand from regional and overseas market supported their prices, thus the prices of Styrene and Acrylonitrile rose by 50% and 11.11% respectively within the quarter, pushing up the domestic SAN prices significantly during this period.
Asia
The Asian market suffered global shortage of the key petrochemicals amid high demand from the downstream sectors during this quarter. In the Indian market, traders were forced to increase SAN prices as imports remained uncertain due to congestion across prime trade routes and lower container availability which supported the prices of imported chemicals including SAN. The price of SAN in India rose by more than 11% from January to March 2021 and settled at USD 1432.7/MT till March end. In addition, reduced production activity by the Chinese manufacturers due to Chinese Lunar holidays also reduced the availability of feedstock chemicals across the region, which also supported the prices of SAN in the Asian markets.
Europe
Europe witnessed high demand for SAN from the local as well from export markets during Q1 2021. After US winter disruptions, most of the Asian countries were looking for the cargoes from Europe, although container shortage and domestic transportation disruption across Europe failed to establish a smooth trade between these countries. Hence, the SAN followed an uptrend taking cues from the feedstock Styrene and Acrylonitrile. A major European SAN manufacturer, Trinseo raised its TYRILTM SAN prices by +USD 205 per MT for all its Europe deliveries during the quarter.
For the Quarter Ending December 2020
Asia
In Q4 2020, Styrene Acrylonitrile (SAN) producers faced severe shortage of feedstock Acrylonitrile as there were adverse trade disruption from US Gulf following Hurricane Laura. Moreover, availability of feedstock Styrene also remained limited due to several plant maintenance in Northeast Asia and China. Indefinite maintenance outages across globe led to considerate shortage of Styrene during Q4 2020, however, the supply is expected to rebound soon by early 2021 as China is preparing to onstream some of its scheduled Styrene projects in the near term. The demand for SAN firmed in November in the local Asian markets, backed by the gradual revival in demand from automotive sector following the high festive sales in India. Consequently, SAN prices rallied upwards in India from USD 1447 USD to USD 1538 from October to December.
North America
In USA, the demand for feedstock Styrene and Acrylonitrile from Asian countries remained high during the final quarter due to the strong recovery of industrial activities in Asia and limited regional availability. Production of feedstock in USA was severely affected due to Hurricane Zeta in October, as the power outage occurred in the Gulf of US which further led to force majeure on several plants, some of which continued till mid- December. Furthermore, supply of SAN is likely to remain limited in early 2021 weighed by scheduled outages in the region due to the year -end holidays and peak winter season. Thus, its prices are expected to remain under upward pressure in the near term.
Europe
Europe faced shortage of feedstock materials Styrene and Acrylonitrile during Q4 2020. There were two reasons behind this global shortage, one was less imports from USA due to Hurricane Zeta in October and other was consistent rise import demand from Asian countries. However, the second wave of COVID 19 again tumbled the automobile sector of Europe and hence the demand for SAN from this sector remained low throughout the quarter.
