October 2, 2019

LONDON (GC Intelligence) – Styrene Acrylonitrile (SAN) demand and prices are set to remain on a weak path in October. The rebound in the second half of the year that many were expecting will most likely not take place given the current downside developments across almost all market segments.

The latest disruptions on supply of crude oil in Saudi Arabia injected more uncertainty not only regarding costs but also about the risk of an eventual spike in energy prices and its impact on an already fragile global economy.

However, the fact that oil prices failed to sustain the rally after such dramatic turn of events is indicative of expectations of a weak global economy.

With the threat to costs fading and buyers operating on the side of cautiousness, demand for many SAN downstream segments is set to weaken further in the last few months of 2019. As such Styrene Acrylonitrile (SAN) prices could decrease more than the expected decrease in costs.

Moreover, with a seasonal price dip expected in Q4, buyers will not be in a hurry to fill stocks. As such, forecasts of a decreases in October and November remain unchanged.

The decrease in the prices of styrene monomer in October of around €20/mt was less than expected. The seasonal and market weakness seems to have been countered by production issues currently experienced by a major supplier.

Styrene Acrylonitrile (SAN) prices, according to GC Intelligence analysis, are forecast to decrease around €30/mt in October and €30/mt in November. After the seasonal decreases accentuated by heightened uncertainty and weak economics, a mild seasonal recovery will follow in Q1 and Q2.

However, current negative developments and the lack of any positive signs, are placing the forecast at risk. There is increasing concern that the current poor market dynamics will continue well into 2020.

Styrene Acrylonitrile Prices. Monthly changes and October Forecast. Small increase in September follows an expected decrease of 20 Euros in October.

NOTE: For price levels, forecasts, and a more in-depth analysis take a look at the GC INTELLIGENCE® Market Reports…