Vinyl Acetate Monomer Limiting the Profit Margins for Another Week in the Chinese Market
- 02-Aug-2022 1:56 PM
- Journalist: Nina Jiang
Shanghai, China: The price of Vinyl Acetate Monomer (VAM) in the Chinese domestic market has been steadily falling for the past few weeks. The cost of Vinyl Acetate Monomer (VAM) has generally been declining, and current prices are considerably less than the Chinese market average. Manufacturer quotations have decreased along with the market activity. The nation has seen a decline in Vinyl Acetate Monomer (VAM) sales. In turn, this led to the market for Vinyl Acetate Monomer (VAM) continuing its downward trend. Vinyl Acetate Monomer (VAM)'s price value fell drastically by 7.83% throughout the past week and was assembled at USD 2000/MT FOB Dalian.
Low start-up and production costs have slumped the region's Vinyl Acetate Monomer (VAM) market sentiments. The cost of the upstream components, such as the feedstock Acetic Acid and Methanol, has also been sharply declining. As a result, the market value of Vinyl Acetate Monomer (VAM) has been decreasing. Insufficient enterprise transportation has also been identified as a significant factor causing the prominent fall in VAM market value.
Vinyl Acetate Monomer's (VAM)'s decreasing value is also a result of the product's weak downstream demand. In contrast, there is a good supply and a surplus of inventories because Vinyl Acetate Monomer (VAM) isn't in high demand. Together, these components have been having an impact on the market and decreased the price of Vinyl Acetate Monomer (VAM). As a result, the market's motivating factors have diminished, and the downward trend has been stronger, which has led to the current scenario in the Vinyl Acetate Monomer (VAM) market.
As per ChemAnalyst anticipations, "The market for Vinyl Acetate Monomer (VAM) will continue to display a lower pricing trend for a few more days. Furthermore, until demand from end-user industries like paints, coatings, adhesives, and sealants improves, the pricing trend of Vinyl Acetate Monomer will be downward. However, if the cost pressure escalates and the value of feedstock Acetic Acid increases as well, the price of Vinyl Acetate Monomer would most likely propel."