Global SAN Market Sees Downturn Buyers Cautious, Sellers Seek Profit

FD Hamburg: The European Styrene Acrylonitrile (SAN) market is witnessing a pricing downturn, driven by subdued demand from the downstream sector and substantial end-user inventories. In contrast, SAN prices in the US and Chinese markets remain stable, but globally, a consistent downward trajectory is observed, signaling a distribution phase. Observations reveal cautious buyer strategies and sellers capitalizing on profit-taking opportunities. The extended seasonal holiday period has led to reduced staff and weakened demand, adding to the cautious market behavior.

The pricing trend in the European SAN market continues to show a decline, despite sustained demand in consumer goods manufacturing. However, unresponsive demand from the automotive parts manufacturing sector has led to cautious market sentiment. The presence of significant inventories among end-users has further contributed to a slowdown in trading activities over the past week. The price decrease is attributed to weakened feedstock prices for Styrene and acrylonitrile, coupled with softness in energy prices, impacting overall production costs. Consequently, sellers find themselves compelled to offer discounts in order to stimulate trade. This has resulted in a reduction in pricing for SAN FD Hamburg.

In contrast, the pricing of SAN in the US and Chinese markets remained stable, aligning with the figures reported in the previous week. Despite this stability, SAN prices globally have consistently followed a downward trajectory in recent weeks, fluctuating within a range delimited by its lower and upper bands. This indicates a consolidation phase in the price trend, suggestive of a distribution phase. Recent observations note a marginal downtick in SAN prices over the past week, accompanied by minimal trading volume. Buyers in the market appear to be exercising caution in their procurement strategies, while sellers are actively seeking to capitalize on profit-taking opportunities during this initial phase by shorting their positions.

Of particular interest is the global SAN market, which has undergone a declining trend, potentially signaling a continuation of this trajectory in the weeks ahead. Contributing factors include weakened demand for SAN in industries such as packaging and automotive parts manufacturing. This decline is attributed to an overall slowdown in manufacturing activity due to an extended seasonal holiday period, resulting in reduced staff and contributing to the cautious market behavior observed. Additionally, in terms of feedstocks, both Styrene and energy prices are playing a role in supporting bearish market sentiments. The combined influence of these factors underscores the challenges faced by the SAN market, necessitating careful monitoring and strategic decision-making by market participants in the coming weeks.