For the Quarter Ending September 2024
North America
In Q3 2024, the Styrene Acrylonitrile (SAN) market in North America experienced a steady decline in prices, marking a challenging period for the industry. The downward trend was driven by a combination of factors, including weakened demand from key sectors such as automotive and electronics, which continued to face headwinds from global economic uncertainties. The reduced demand led manufacturers to adopt a cautious stance on new projects and investments, further contributing to the market's sluggish performance.
Supply chain stability and balanced inventory levels were insufficient to counterbalance the subdued demand, resulting in persistent downward pressure on SAN prices throughout the quarter. In the USA, the market saw the most notable changes, with a quarter-on-quarter decline of approximately -4%, underscoring the ongoing price challenges. Compared to the same quarter last year, prices were down by around -5%, reflecting a prolonged bearish trend.
The latter half of the quarter saw a modest -0.4% decrease between August and September, indicating a gradual price adjustment. The quarter concluded with SAN DEL New York priced at USD 2120/MT, highlighting the overall negative pricing environment and the hurdles faced by the SAN market in maintaining stability amidst uncertain demand conditions.
APAC
In Q3 2024, the Styrene Acrylonitrile (SAN) market in the APAC region experienced a period of slight price adjustments, with China seeing the most notable changes. The quarter was marked by a challenging market environment influenced by several factors. Weakened demand from critical sectors like automotive and electronics, combined with global supply chain disruptions and volatile raw material costs, shaped the market dynamics. Despite these challenges, the overall pricing in the region remained relatively stable. The comparison between Q2 and Q3 2024 indicated a marginal 0.3% increase in average prices, reflecting a cautious balance between supply and demand. Within the quarter, prices remained mostly stable, with a minor 1% decline observed between the first and second halves. This stability was evident despite the broader economic uncertainties impacting demand across the region. The quarter-ending price of SAN CFR Qingdao stood at 1520 USD/MT, slightly lower than its July peak. This price movement exemplified the market's struggle to achieve significant upward momentum, with overall sentiment remaining tempered. Although the quarter saw some stability, the underlying market conditions highlighted the difficulties in sustaining demand recovery amidst persistent economic headwinds.
Europe
In Q3 2024, the Styrene Acrylonitrile (SAN) market in Europe experienced a period of gradual price increases, reflecting a modest improvement in the pricing environment. The market observed a 0.3% rise in average prices compared to the previous quarter, indicating a slight positive shift. The recovery was primarily driven by demand stabilization in key sectors like automotive and electronics, alongside some supply chain adjustments that supported pricing. The Netherlands emerged as a focal point for price changes, showing a noticeable rise, particularly in the latter part of the quarter. Prices increased by approximately 3% between August and September, highlighting a resurgence in demand and better market conditions. Despite global economic uncertainties, the steady supply of SAN and carefully managed inventory levels helped maintain price stability throughout the quarter. The quarter-ending price of 2591 USD/MT for SAN FD Rotterdam underscored the positive sentiment in the European market. This upward movement, following a period of decline earlier in the year, showcased the market's resilience and capacity to adapt to evolving supply and demand dynamics. Although challenges persisted, the overall trend in Q3 pointed towards a cautiously optimistic outlook for the SAN market in Europe.
South America
In Q3 2024, the Styrene Acrylonitrile (SAN) market in the South America region experienced a gradual decline in prices, shaped by various market dynamics. A key factor driving this trend was the global surplus of SAN, which combined with weakening demand from crucial industries like automotive and electronics, put consistent downward pressure on prices. The stability of supply chains, particularly for acrylonitrile—an essential feedstock for SAN production—further contributed to this imbalance. As economic uncertainties persisted, market sentiment turned bearish, leading to cautious trading behaviour and reduced market activity. In Brazil, the most significant price fluctuations within the region were observed. The overall trend highlighted a steady decrease, with the quarterly percentage change at approximately -3.1% from the previous quarter and a significant decline compared to the same quarter last year. Additionally, a subtle decrease of about -0.4% between the first and second halves of the quarter was recorded, reflecting ongoing market pressures. The quarter concluded with SAN prices at USD 2185/MT CFR Santos in Brazil, underscoring a persistently negative pricing environment. The continuous decline in prices highlighted the challenges faced by the SAN market in sustaining demand amidst an oversupplied and uncertain global market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for Styrene Acrylonitrile (SAN) in the North American region has been characterized by a consistent downward pricing trend. This quarter witnessed a persistent decline in SAN prices due to a confluence of factors significantly impacting the market. Primarily, the reduction in feedstock costs, particularly styrene, led to lower production expenses, thereby exerting downward pressure on SAN prices. Additionally, subdued demand from key sectors such as packaging and automotive further exacerbated the price decline, as these industries faced slower growth and reduced consumption of SAN.
In the United States, the most pronounced price changes were observed. The overall market trends reflected a bearish sentiment, with high inventory levels and reduced demand contributing to the persistent price drop. Despite a moderate surge in the U.S. manufacturing PMI to 51.3 in May, indicating an optimistic production outlook, this did not translate into increased SAN prices due to overstocked inventories and stagnant demand from downstream industries. Seasonality also played a role, with lower demand typically observed during this period.
From a year-on-year perspective, SAN prices experienced a significant decrease compared to the same quarter in the previous year, highlighting a negative pricing environment. When compared to the previous quarter in 2024, there was a modest decrease of 4%, indicating a gradual but noticeable decline. Within the quarter, a further price reduction of 6.5% was noted between the first and second halves, underscoring the persistent bearish trend. The quarter concluded with SAN prices settling at USD 2,140 per metric ton DEL New York in the USA, reflecting the overall negative pricing environment driven by a combination of lower raw material costs, subdued demand, and high inventory levels.
APAC
In Q2 2024, the Styrene Acrylonitrile (SAN) market in the APAC region experienced a notable upward trend in pricing. This quarter has been characterized by several significant factors that influenced market prices. Primarily, rising costs of feedstocks such as styrene and acrylonitrile played a critical role in driving SAN prices higher. These raw material costs were impacted by geopolitical tensions, fluctuations in crude oil prices, and logistical disruptions. Additionally, robust demand from downstream sectors like automotive, electronics, and packaging industries further exerted upward pressure on prices. The consistent economic growth and increased industrial activities in the region also contributed to the heightened demand for SAN, leading to a tighter supply scenario. Market participants responded by accumulating inventories to hedge against anticipated price increases, further driving up prices. Focusing on South Korea, which experienced the maximum price changes, the overall trend reflected a strong bullish sentiment. The country saw a remarkable increase in SAN prices compared to the same quarter last year, highlighting the substantial growth in demand and supply constraints. From the previous quarter in 2024, prices climbed by 12.43%, demonstrating the persistent upward trajectory. Within the quarter, prices in the second half showed a slight 2.23% increase over the first half, indicating a steady rise in demand and stable supply conditions. The quarter-ending price for SAN in South Korea was USD 1,510/MT on an FOB Busan basis, reflecting a positive pricing environment. This consistent increase underscores the robust market dynamics and the sustained demand from key industrial sectors. Overall, the pricing environment for SAN in Q2 2024 has been positive, driven by strong demand, rising feedstock costs, and strategic stockpiling by market participants.
Europe
In Q2 2024, the Styrene Acrylonitrile (SAN) market in the Europe region has been characterized by a consistent downward trend in prices. Various factors have converged to exert significant downward pressure on the market. Key among these has been the persistent weak demand from critical downstream industries, such as automotive and electronics, which have scaled back procurement activities due to economic uncertainties. Moreover, the reduction in feedstock prices, particularly acrylonitrile and styrene, significantly contributed to the overall decrease in SAN prices. High inventory levels across the region further exacerbated the situation, prompting suppliers to offer substantial discounts to clear their stocks. The stability of input costs, coupled with improved logistics and supply chain efficiencies, alleviated some supply constraints, thereby supporting the decreasing price trend. Focusing exclusively on Germany, the country observed the most pronounced price changes within the region. Overall trends indicated a decline driven by reduced procurement activities in key manufacturing sectors, influenced by both global economic pressures and localized market contractions. The seasonality effect was evident as demand typically wanes during the summer months, aligning with the observed price decrease. From the same quarter last year, SAN prices in Germany fell notably, reflecting the ongoing market contraction. Comparing Q2 to the previous quarter of 2024, there was a 6.22% drop, further illustrating the negative sentiment pervading the market. The first half of the quarter saw higher prices than the latter half, marking a 5.4% decrease. Concluding this quarter, the price of SAN FD Hamburg settled at USD 2,460/MT. This pricing environment has been distinctly negative, driven by the interplay of reduced demand, oversupply, and stabilized input costs.
South America
In Q2 2024, the Styrene Acrylonitrile (SAN) market in South America witnessed a notable decline in prices, with Brazil experiencing the most significant changes. The overall quarter saw a negative trend in pricing, influenced by various key factors. Weak demand from crucial sectors like automotive and electronics played a pivotal role in driving prices down. Additionally, price reductions in feedstock materials such as acrylonitrile and styrene contributed to the price decrease. High inventory levels in the domestic market led suppliers to offer discounts to clear stock, further impacting pricing dynamics. Brazil, in particular, experienced substantial price fluctuations, reflecting the broader regional trend. The quarter saw a significant decrease in SAN prices compared to the same period last year, indicating a challenging market environment. Moreover, there was a notable 9.1% decrease in prices from the previous quarter in 2024, highlighting the ongoing downward trajectory. The comparison between the first and second half of the quarter revealed a 3.3% decrease in prices, emphasizing the continued negative sentiment. As Q2 2024 concluded, SAN was trading at USD 2,200/MT CFR Santos in Brazil, underscoring the prevalent downward pricing trend in the region.
For the Quarter Ending March 2024
North America
The North American market for Styrene Acrylonitrile (SAN) maintained a gradual yet consistent upward trend in prices during the first quarter of 2024. Prices in the United States kicked off the year with stability, as January saw prices hovering at USD 2240/MT.
However, the market started to shift upwards from February onwards. By March, SAN prices had risen to USD 2470/MT on FOB - Houston basis, marking a period of notable growth. This price rise was influenced by a confluence of factors, including an incremental increase in feedstock styrene prices and higher energy costs. The market absorbed these upstream pressures without major disruptions to the SAN supply chain.
Moreover, a steady demand from key downstream industries, such as automotive and consumer goods manufacturing, supported the price increment. Despite the price uptick, market participants managed inventories strategically, negotiating carefully in a market poised between supply steadiness and anticipatory demand. The North American SAN market exhibited resilience in Q1, balancing supply adequacy against a backdrop of ascending price trends and sustained industrial demand.
APAC
In Q1 2024, the APAC market for Styrene Acrylonitrile (SAN) witnessed a gradual uptick in prices. In China, the quarter began with price stability, reflective of a cautious market amidst a consolidation phase. As the quarter progressed, prices gently increased, influenced by a slight rise in feedstock styrene costs and persistent freight challenges from the Korean market. Despite a muted demand from automotive and consumer goods sectors during the holiday period, the market maintained its composure, bolstered by steady supplies from Korea. March saw prices climb to USD 1490/MT, driven by a combination of delayed imports, causing a pinch in the supply, and a spurt in demand from electronics and automobile industries. Market players, predicting potential volatility or responding to the increase in demand, stocked up, exerting further pressure on prices. The APAC SAN market's dynamics throughout the first quarter were a testament to the delicate balance between cautious buying strategies and opportunistic selling, with companies navigating through supply disruptions and downstream demand signals.
Europe
In the first quarter of 2024, the European market for Styrene Acrylonitrile (SAN) saw a trend of steady escalation in prices. The quarter commenced with prices holding firm, indicative of a market consolidating after a period of decline. Market participants in Germany, wary from a seasonal slowdown in key sectors like automotive and consumer goods manufacturing, adopted a guarded stance in their procurement strategies. As the quarter progressed, SAN prices in Germany saw a steady uptick, culminating in March with a significant increase to USD 2590/MT. This was primarily fuelled by rising feedstock styrene prices and the ripples of supply chain disruptions that impacted import dynamics. Notably, demand from the automotive sector lent considerable support to this upward price movement, reflecting a revival in industrial activity. Despite the supply-side challenges, German buyers navigated the market with careful stock management and strategic procurement, allowing them to ride out the wave of price increases. By the end of March, the SAN market had adapted to the evolving supply constraints and increased industrial demand, ultimately reflecting a market that was cautiously optimistic yet resilient in the face of logistical hurdles and price volatility.
South America
In the South American region, specifically Brazil, the Styrene Acrylonitrile (SAN) market observed a noticeable price increase throughout the first quarter of 2024. Prices in March reflected this upward trend, closing the month at USD 2230 per metric ton on CFR - Santos basis. This was indicative of a steady escalation from the beginning of February, propelled by a combination of supply chain constraints, rising demand in consumer electronics, and increased costs in upstream markets for styrene and acrylonitrile. The market's firm footing was further supported by an upswing in Brazil's manufacturing PMI, a signifier of growth in domestic demand leading to more production and new orders. Brazil, heavily reliant on SAN imports from Asian countries and the Middle East, experienced changes in export growth rates to the country, which affected domestic supply levels. With Brazil's exports of SAN notably reduced, the internal market experienced a tightening in supplies that pressured prices upward. The demand for SAN, driven largely by its applications in consumer electronics and packaging for cosmetics, was consistent with global market trends, notably the output fluctuations from China. As Q1 ended, the SAN market in South America presented a complex yet growth-oriented narrative, reflecting broader economic activities and market sentiments.
For the Quarter Ending December 2023
North America
The Styrene Acrylonitrile (SAN) market experienced a challenging Q4 2023 across North America, impacted by multiple factors. Firstly, the market witnessed a surplus supply of products flowing in from manufacturing units, leading to an oversupply situation. Secondly, deteriorating demand from downstream industries, particularly from overseas segments like Packaging and household manufacturing units, resulted in subdued trading activities.
The USA, being the largest market for SAN in the region, saw a bearish trend during the quarter, primarily driven by subdued demand from overseas markets. However, attractive end-user consumption in key industries like Automotive and Packaging drove the market sentiments downward. In Dec 2023, the price of SAN DEL New York in the USA was recorded at USD 2060/MT.
There was no significant plant shutdown during the quarter. In conclusion, the SAN market in North America faced a challenging Q4 2023, primarily driven by oversupply and subdued demand from overseas markets. Towards the end of the quarter, In the US Styrene Acrylonitrile (SAN) market, there's been a discernible shift away from a prolonged period of declining prices, signaling a move towards a more stabilized pricing scenario.
Asia Pacific
The Styrene Acrylonitrile (SAN) market in the APAC region during the current quarter of 2023 (Q4) has been characterized by stable market situations and moderate demand from downstream segments. The persistent weakness in major feedstock Styrene fundamentals, coupled with lower energy prices impacting the overall production cost, prompted suppliers to provide discounts, aiming to rekindle market participation. The market faced challenges due to restrained demand from consumer goods manufacturing industries, casting a cautious shadow on market prospects. The market has witnessed a balanced and stable supply trend, and any plant shutdowns have not been reported. South Korea has seen a bearish market situation, with high supply and repetitive surges of material from manufacturing units, leading to an oversupply situation. Although feedstock Acrylonitrile experienced a recent uptick, the persisting weakness in major feedstock Styrene fundamentals persisted, with lower energy prices decreasing the overall production cost of the product. The trend, seasonality, and correlation price percentage of South Korea for Q4 2023 was declined by 1%, with a percentage change of negative 9% from the same quarter last year. In Dec 2023, the price of SAN FOB Busan in South Korea is USD 1290/MT.
Europe
The European Styrene Acrylonitrile (SAN) market in Q4 2023 exhibited a stable to bearish trend due to various factors. Oversupply due to regular inflows of material from manufacturing units and moderate to low demand from downstream industries like packaging and consumer goods manufacturing played a significant role in the declining trend. A significant escalation in the cost of a fundamental SAN feedstock, Acrylonitrile, while Styrene, another crucial feedstock, has experienced a considerable decline in its market valuation, triggering a cascading impact within the SAN market, primarily affecting Belgium's market. The market displayed an overall stable supply trend with moderate demand from downstream industries. The trend for Belgium SAN market observed a negative 8% change from the last year's same quarter price, whereas the current to previous quarter percentage change was declined by 9%. In Dec 2023, the price of SAN FD Antwerp in Belgium was USD 2335/MT FD Hamburg. Diminished demand from downstream sectors, particularly Electronics and Industrial Equipment manufacturing units, has contributed to a reduction in prices.
For the Quarter Ending September 2023
North America
In the US market, Styrene Acrylonitrile SAN has experienced a noticeable declining trend within the entire third quarter of 2023 with approximately (6.5%) and in the beginning of Q3, the SAN market showcased a bearish market trend with deteriorating demand dynamics of the material in the global market on the back of limited bulk inquiries from the associated downstream Packaging industries. At the same time, sufficient availability of the material consequently narrowed the gap between demand and supply and forced market suppliers to keep the price softer. Further, in the month of August, the Styrene Acrylonitrile (SAN) market displayed a measured increment in its pricing paradigm. The price elevation was primarily attributed to the notable surge in feedstock Styrene contract prices, coupled with the robust underpinnings of the upstream market segment. As feedstock Styrene prices continue to climb, the production costs of SAN have naturally followed suit, directly impacting the final product's market price. In September, the Styrene Acrylonitrile (SAN) market in the United States exhibited a remarkable decline in its market value. This decline can be largely attributed to a reduction in export activities, primarily caused by drought conditions in Panama. The resulting slowdown in shipping through the Panama Canal has led to a decrease in export volumes. Consequently, the domestic market has witnessed the accumulation of high inventories, which has significantly influenced market dynamics. Furthermore, weak demand from downstream industries, including sectors like packaging, and the presence of ample inventories within the local market have played a pivotal role in showcasing a bearish market trend.
APAC
During the third quarter of 2023, the Asia-Pacific region's Styrene Acrylonitrile (SAN) market experienced a slight increase of around 1.2%. At the beginning of Q3, the SAN market exhibited a bearish trend due to a surplus of SAN material in the regional market. However, as the quarter progressed, this surplus helped bridge the gap between supply and demand, leading to the modest market growth observed. Furthermore, the demand outlook remained low from the downstream Packaging and Electronics and electrical sector, leading to cautious market sentiments. As the second month of Q3 unfolded, the flow of SAN from South Korea to the Chinese market encountered delays, resulting in a tighter supply situation. However, demand from the downstream industries, such as the Electronics & electrical and Automotive application sectors, remained moderate. Suppliers faced hurdles in fulfilling the market demand, which kept the market undersupplied with products and showcased a positive increment in its market value. In September, the Chinese Styrene Acrylonitrile (SAN) market demonstrated a notable incline trend. This surge results from a harmonious interplay of factors, including the high feedstock Acrylonitrile costs and the strategic impact of feedstock Styrene prices, which have collectively upheld SAN prices at elevated levels. The market's resilience is further underpinned by consistent demand from crucial sectors like Electrical and electronics and consumer goods manufacturing industries, which acted as bullish forces.
Europe
Throughout the third quarter of 2023, the European Styrene Acrylonitrile (SAN) market maintained a bearish outlook. The price of SAN FD Rotterdam (Netherlands) experienced a decline of approximately 6.5% over the entire duration of Q3. In the first month of Q3, Styrene Acrylonitrile (SAN) witnessed a decline, largely influenced by the dynamic demand patterns prevailing within the Packaging industries. Buyers exhibited caution in making substantial purchases, given the presence of high inventory levels and subdued demand in the market. Further, in the month of August, the market Styrene Acrylonitrile (SAN) market has seen a substantial surge in prices in the European market, primarily attributed to the notable increase in feedstock Styrene spot prices and the robust market fundamentals in the upstream segment. Moreover, heightened demand from downstream derivative industries, particularly the Automotive Electronics and Electrical sectors, has led to a supply-demand imbalance, resulting in upward price escalations. However, in the month of September, the market witnessed the region's weak Purchasing Managers' Index (PMI), which has had cascading effects on market dynamics. Reduced manufacturing activities and industrial output have led to a decline in demand for SAN from sectors such as packaging and household manufacturing units, which kept the overall market bearish.
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.
