Vinyl Acetate Monomer (VAM) prices remained sluggish and declined by a factor of xxx in FYxx owing to lower demand sentiment and deflating energy and feedstock prices. This deflationary trend occurred as inflation control measures were employed globally to manage high inflation triggered by supply disruptions and COVID-xx. VAM markets across the globe initially remained bullish in the first quarter of FYxx, anticipating lower inflation expectations. However, they turned negative, leading to large-scale destocking of VAM and acetic acid markets by US producers. The feedstock prices remained steady despite the decline in VAM and acetic acid prices, as OPEC+ controlled volume to arrest falling petrochemical prices. FYxx ended with subdued VAM demand sentiments, higher interest rates, and contracting manufacturing to control inflation.
In FYxx, North American markets are anticipated to recover demand sentiments in the VAM value chain, as prices have already been steady since December...
