Bearish feedstock prices and higher inventories plummets prices of Vinyl Acetate Monomer in South Asia.

On 05-Jan, the prices of Vinyl Acetate Monomer in South Asia were slipped amid weak demand and sufficient supply. In India, the prices of Vinyl Acetate Monomer were observed to be INR 168000/ton EX-Hazira with the declination of 2.63% compared with 31St December. The Feedstock acetic acid prices in India were INR 79240/ton Ex-Kandla. Ethylene market was stable in India with the price of INR 77740/ton Ex-JNPT.

As the prices of Feedstock Ethylene, Acetic acid and Methanol impacted during this period which affected the price of Vinyl Acetate Monomer (VAM). Downstream Paint and coating market was weak supported by the weak consumer demand and bearish liquid coating industries in India, and consumers started purchasing on need-to basis. Local Vinyl Acetate Monomer Producers Vinyl Acetate Monomer plant was operated stably while the supply was relatively sufficient. As per market players, new orders were limited, and inventory levels was high. However, due to high inventories of enterprises the difficulties can be seen. Imports from Singapore and China were reduced due to oversupplies.  The quotation for traders is high and actual transactions are less. Ample demand, sufficient supply along with crashed price of upstream products the downfall can be seen.

According to ChemAnalyst, it is expected that the demand of Vinyl Acetate Monomer will recover in the upcoming weeks and the prices of feedstock will be stable followed by their surge in the long run. However due to rain and snow weather in the northern region the import from China may affect the logistics market. Downstream Paint and coating industries will maintain the stability in a short period of time. With the upcoming installation of new Ethylene plant by Haldia Petrochemicals it is expected that production of Ethylene will increase with the increase in production of Vinyl Acetate Monomer.