Vinyl Acetate Monomer (VAM) Prices Going South in China, Mirroring Acetic Acid Market
- 12-Jul-2022 3:13 PM
- Journalist: Li Hua
Shanghai, China: Vinyl Acetate Monomer (VAM) prices have been falling in the Chinese domestic market for a few weeks. For the current week, the pricing trend for VAM stayed negative. The primary reason for this price drop in Vinyl Acetate Monomer is the plummeting price value of feedstock Acetic Acid which has been declining due to the ongoing clearance of Acetic Acid stocks in the country. The Acetic Acid manufacturer wants to destock its inventories to restart production for the third quarter of 2022. Consequently, they have been selling Acetic Acid at a cheaper value. Furthermore, the decline in trading activity has also been one of the significant factors behind the price decrement of VAM.
China is one of the major producers of VAM around the globe; hence, prices have plummeted due to a significant drop in Vinyl Acetate Monomer exports. In addition, the price of vinyl acetate monomer dropped because of weak demand from downstream industries such as paints, coatings, adhesives, textiles, etc.
The product is often only purchased in extremely tiny quantities by the downstream industries of VAM. Vinyl Acetate Monomer (VAM) producers have been cutting their profit margins while selling their goods at significantly lower prices. The fact that the costs of all negotiated agreements have been falling further lends support to the pricing trend. The market's impression of VAM was negatively impacted by decreased downstream demand for VAM, declining raw material value, weaker purchasing power, and reduced trade activity.
As per ChemAnalyst Anticipations, "The Vinyl Acetate Monomer (VAM) prices are expected to keep falling on the back of Acetic Acid price plunge. In the upcoming days, the Chinese Viny Acetate Monomer (VAM) might narrow down the profit margins of manufacturers. However, the outlook for the market for Vinyl Acetate Monomer in China might change if downstream demand increases."