US and Chinese SAN Market Faces Price Decline, Stability Observe in Europe

FD Hamburg: The Styrene Acrylonitrile (SAN) market exhibits varied trends across several regions during the entire November of 2023. In Europe, stable SAN prices are supported by moderate demand from its major downstream industries. In the US, prices decline due to subdued consumer goods manufacturing demand and ample inventories. Conversely, the Chinese SAN market faces setbacks from cautious consumer goods manufacturing industries. The global market grapples with softened feedstock Styrene and crude oil prices, influencing overall production costs and prompting sellers to offer discounts, shaping a dynamic and complex market landscape.

The European SAN market had remained stable. While feedstock acrylonitrile prices continue to showcase increments in pricing, the weakness in major feedstock styrene prices has been pivotal in maintaining prices. In addition, there is weakness in the energy prices due to a huge downfall in the crude oil price, lowering the overall production cost of the product. Further moderate demand for SAN from downstream industries, such as the electrical and automotive sectors, has continued to fuel the market, underpinning its stability. However, the packaging sector's weaker demand has limited the anticipated market growth, contributing to a state of saturation. Thus, ventures remain reluctant to increase the prices further for the regional and overseas markets.

In contrast to the European market, the US SAN market continues to experience a downtrend in prices. Despite sustained demand for SAN in sectors like automotive and packaging, the market grapples with subdued demand for consumer goods manufacturing, prompting a cautious market sentiment. Additionally, substantial inventories among end-users have contributed to sluggish trading activities throughout the past week. The price decline is influenced by weakened feedstock Styrene and a decrease in upstream crude oil prices, impacting the overall production cost. Consequently, sellers are compelled to offer discounts to stimulate trade. Thus, the SAN FOB Houston market witnessed a reduction in its pricing.

Similarly, the Chinese SAN market has experienced a setback, with a declining price trend. Despite steady demand for SAN from the Automotive and Electronics sectors, the market has faced persistently subdued demand from the Consumer goods manufacturing industries, leading to a cautious market outlook. Additionally, a cheaper influx of fresh material from the Korean region bound sellers to provide discounts on their products to enhance trading activity. This weakness in SAN price is being observed specifically due to softness in feedstock Styrene and upstream crude oil prices affecting the overall production cost of the product. Thus, the reliance on imports of products from the South Korean market keeps the Chinese market's pricing soft.

ChemAnalyst forecasts suggest a continued decline in SAN prices, especially in the US and Chinese markets, as demand struggles and inventories weigh on prices. The intricate dynamics across these regions present challenges and opportunities in the evolving SAN market.