Styrene Acrylonitrile Prices Continue to Rally Downwards Amidst Weak Market Sentiment

Hamburg: Entering February of 2023, the Styrene Acrylonitrile prices continued decreasing across the United States and Europe, keeping the bearish momentum intact. Numerous variables that affected the Styrene Acrylonitrile market resulted in the low demand from these regions.

The price for Styrene Acrylonitrile in European countries declined by 0.4% in January due to sluggish demand from the packaging and other end-use industries and inflation in the Eurozone. Meanwhile, Styrene Acrylonitrile prices in the United States remained soft to stable in January, varying by 0.9% compared to the previous month due to muted demand from the packaging and other end-use industries, while feedstock Styrene declined by 5.7%. Furthermore, the lackluster demand for Styrene Acrylonitrile in the downstream industry is also a result of the oversupply in the markets.

Manufacturers reported declining end-use sector orders and gloomy market sentiment in January. Consumers' reluctance to spend is due to high-interest rates and inflation, which continue to depress the market. Consequently, In the German market, the prices of Styrene Acrylonitrile continued to dip this week of February; Styrene Acrylonitrile FD Hamburg prices were evaluated at USD 2640/MT, declining by 1.9% on a week-on-week basis.

The price of European Styrene Acrylonitrile generally decreased due to low feedstock Styrene costs and limited demand. The sharp decline in new orders, the recent rise in inventory, and the lag effect of high energy prices all indicate Germany's negative outlook, despite some optimism, as shown by improving sentiment indicators.

ChemAnalyst predicts a slight decline in the price of Styrene Acrylonitrile in February due to low inflation and negative market sentiment. Nevertheless, this week's increase in Brent crude upstream indicates that there will likely be more demand in the automotive sector for Styrene Acrylonitrile. As a result, it is anticipated that prices for Styrene Acrylonitrile will probably increase slightly over the next few weeks.