US Vinyl Acetate Monomer Prices Continue their Downtrend in July 2022
- 27-Jul-2022 2:05 PM
- Journalist: Nicholas Seifield
Texas, USA: After weeks of consistent rise, US Vinyl Acetate Monomer prices are finally declining over the last two weeks. Though VAM's market sentiments have already depicted a downward trend in the Asian countries, it has continuously been inclining in the USA market for the second week straight. This drop in VAM prices was somewhat surprising yet much needed and has relieved the market participants.
The key reason behind this plunge in the Vinyl Acetate Monomer prices has been the falling market value of feedstock Acetic Acid. As the costs of Acetic Acid have been dropping since 8th July, it has been impacting the VAM market since then and has caused the VAM prices to decrease from the week ending on 15th July. Amidst deteriorating feedstock value, the manufacturing cost of Vinyl Acetate Monomer has been declining, causing cost pressure to reduce, and hence has been leading to the price fall of Vinyl Acetate Monomer in the domestic market.
Furthermore, the downstream demand for VAM from paints, coatings, adhesives, sealants and textile industries has been weakening, contributing to the slump in the Vinyl Acetate monomer pricing trend. In addition, the market sentiments of VAM have been deteriorating across the globe, making its imports cheaper in value and causing its market value to decline considerably. Meanwhile, the prices of Vinyl Acetate monomer (VAM) have softened further owing to growing inventories as the feedstock is available at a lesser cost, and the production rates are reasonable, coupled with poor demand from several downstream industries.
As per ChemAnalyst, "the market sentiments of Vinyl Acetate Monomer would keep deteriorating in the USA market for the upcoming days on the back of decrementing demand and sufficient stockpiles. The condition would not recover until the downstream demand improves or the prices of feedstock Acetic Acid shift direction in the domestic market."