China Witnesses Another Week of Vinyl Acetate Monomer (VAM) Price Decline
- 20-Jul-2022 3:15 PM
- Journalist: Robert Hume
Tianjin, China: Prices for Vinyl Acetate Monomer (VAM) have been declining in the domestic Chinese market for a few weeks. The pricing trend for VAM remained negative during the current week. The value of Vinyl Acetate Monomer declined by 1.34% and assembled at USD 2210/MT FOB Dalian during the week concluding on July 15. The fundamental cause of the Vinyl Acetate Monomer price decrease is the falling feedstock Acetic Acid price, which has been falling owing to the ongoing liquidation of Acetic Acid supplies in the nation. For the third quarter of 2022, the acetic acid market plans to recommence production by destocking its stocks. As a result, they have been selling acetic acid for less money. Additionally, one of the leading causes of the decrease in VAM's price has been the fall in trading activity.
China is among the world's largest producers of Vinyl Acetate Monomer, and its prices have fallen amidst reduced trading activities and increased availability of the commodity. In addition, the weak demand from downstream sectors, including paints, coatings, adhesives, textiles, etc., caused the price of Vinyl Acetate Monomer to decline.
The downstream businesses of VAM frequently only buy the product in minuscule amounts. Producers of Vinyl Acetate Monomer (VAM) have been reducing their profit margins while offering their products at noticeably cheaper costs. The pricing trend is supported by the fact that the expenses of all negotiated agreements have been decreasing further. Reduced downstream demand for VAM, diminishing raw material market value, weakened purchasing power, decrementing trading activities, and other factors all negatively impacted the market's perception of VAM.
According to ChemAnalyst anticipations, "Prices for Vinyl Acetate Monomer (VAM) are expected to continue going down due to the sharp decline in acetic acid prices. The Chinese Vinyl Acetate Monomer (VAM) could reduce manufacturer profit margins in the coming days. However, if downstream demand rises, the market outlook for Vinyl Acetate Monomer in China could change."