For the Quarter Ending December 2022
Due to the availability of products in the country and poor demand from both the domestic and international markets, the price of VAE Redispersible Powder declined throughout the fourth quarter of 2022. According to market sources, traders were receiving cheaper shipments as a result of the global pessimism surrounding the recession, particularly in the USA and Europe. Additionally, despite the festive holidays, demand remained weak, and traders already had ample cargo for December. However, several raw material prices were seen to be rising due to temporary shortages induced after polar storm Elliot that affected some parts of the country but didn't affect the price trend of VAE Redispersible Powder.
Sodium Silicate, like other commodities, had a fall in price on the Asian market in Q4 2022. According to the data, the price of VAE Redispersible Powder effectively decreased in line with the decline of its raw material Vinyl Acetate Monomer (VAM). The pricing dynamics of various commodities, including VAE Redispersible Powder in the Chinese market this quarter, have been impacted by the abundance of product supply in the nation. Additionally, dealers had sufficient product supply to meet all domestic and international market demands. The product's demand continued to be moderate, and in November, compared to earlier months, there was a slight improvement. However, the product's wide availability prevented any favorable price variance throughout the nation.
Low demand from the downstream construction industry declined VAE Redispersible Powder prices again this quarter. Low energy prices in the region are another major factor that drives the market. The Power Purchase Agreement (PPA) market declined 15% in December 2022 due to lower heating needs and robust gas supplies in Europe; no energy shortage was noticed at this time. As a result, the cost of a number of goods, such as VAE Redispersible Powder, effectively dropped and stayed low throughout the quarter. A considerable decline in activity was seen in the construction sector for a number of reasons, including poor purchase orders, recessionary concern, and the onset of the winter season's cyclical slowdown.
For the Quarter Ending September 2022
The data shows that VAE Redispersible powder price has maintained stability with a marginal hike of fluctuation throughout the third quarter of 2022 in the USA, owing to prolonged inflationary pressure and fluctuating input expenses. However, demand fundamentals for the product declined in the regional market due to a steep fall in construction activities in the country. However, the country's producer price index has eased by the first week of July 2022, primarily driven by declined prices of lumber and concrete in the regional market. Furthermore, prices rose marginally during July and kept on tumbling till the rest of the quarter. Thus, VAE Redispersible powder was heard hovering around USD 3215/MT during September 2022.
As per the market sources hinted in the previous quarter, the price of VAE RD polymer rose effectively during the month of July 2022, owing to rising inflationary pressure on converters amidst stable supplies. The demand dynamics for the product were heading towards a dullness as the monsoon season was arriving in the country. However, slow offtakes led the price to show a decline in the domestic market during the first week of August, which was rising earlier. Additionally, traders hinted that, due to slow demand, VAE RD prices might witness further negative revisions in the coming months. Conclusively, VAE RD prices hovered around USD 2899/MT Ex-Mumbai during September 2022.
Despite the fact that the regional market of Europe was facing the threat of stagflation which was expected to turn into a recession, VAE RD prices remained stagnated with marginal price revisions throughout the third quarter of 2022. As per the market sources, demand dynamics for the product slowed down as the procurers are delaying procurements and opting for a wait-and-see approach. However, the threat of recession in the market was bothering regional key players; thus, no such increment or huge price hike was observed during this quarter. Thus, post witnessing a marginal hike, VAE RD price assessed around USD 3295/MT during this September.
The North American construction sector has been hampered due to global market disturbances that affected the pricing dynamics of several construction raw materials, including VAE Redispersible powder in the US market. As per the data, marginal yet consistent price hikes were observed for VAE Redipersible powder during Q2 2022, owing to protracted inflationary pressure on domestic manufacturers. During the first half of the quarter, the producer price index rose effectively and reached a record high value, which later slipped again as an after effect of threatening recession outlook. In addition, the demand outlook remained dull throughout this timeframe in the US and Canada, as consumers were delaying procurements due to high costs of raw materials, which eventually turned into weak economic activities.
VAE Redispersible powder prices remained buoyant throughout the quarter in the Asian market, while demand dynamics showcased mixed sentiments for different economies. As per the data, a significant hike was observed in the Indian and Chinese markets, bolstered by rising inflation and optimistic demand dynamics. In India, there were no such pandemic-related qualms, which supported the positive demand from niche buyers. However, despite effective recovery from the pandemic-related devastations in China, the domestic construction sector struggled to recover. Consequently, demand fundamentals for the product remained gloomy in the Chinese market during Q2 2022.
During this quarter, the European market remained hesitant about the demand for VAE Redispersible powder. A major market source revealed that most commodities were primarily rising due to the ongoing war crisis in the region, which led to a steep and continuous rise in energy prices. Furthermore, demand for the product remained range-bound as construction activities eased down under high raw material costs and maintained overall sluggishness in the market. Thus, the data shows this quarter's marginal price increments for VAE Redispersible powder in the European market.