For the Quarter Ending March 2022
The price rise of Vinyl Acetate Ethylene redispersible powder abetted by government infrastructure development proposed during the fourth quarter of 2021 elevated the demand of construction products like Vinyl Acetate Ethylene redispersible powder during the Q1 of 2022 in the American market. The upstream Ethylene price in the American market was peaking till January and prices started to drop owing to ease in refinery margins stabilized demand and continued supply chain disruptions throughout the quarter, albeit with improved rail car availability, despite the decrease in upstream price during the first quarter of 2022 in the American market the price of Vinyl Acetate Ethylene redispersible powder price was rising on the back of strong sentiments from the downstream construction sector during Q1 of 2022. As per ChemAnalyst data, VAE RD assessed around USD 2950/MT during March 2022.
The Prices of Vinyl Acetate Ethylene redispersible powder in the Asian market was mirroring the upstream Ethylene market and was rising throughout the first quarter of 2022. In China despite the dull demand from the downstream construction sector owing to the winter Olympics held in Beijing, the upstream ethylene market was strong enough to keep the Vinyl Acetate Ethylene redispersible powder price from dropping in the first quarter of 2022. In the Indian Market, the prices of Vinyl Acetate Ethylene redispersible powder price was increasing on the back of strong market sentiments for the downstream construction materials during Q1 of 2022. VAE RD prices hovered around USD 3040/MT in India during March 2022.
In the European market the prices of Vinyl Acetate Ethylene redispersible powder were soaring due to high upstream Ethylene prices on the account of sky-rocketing feedstock natural gas price because of sanctions on imports of Russian gas and oil by various European countries as a sign of opposition of Russia's invasion of Ukraine. The home improvement sector in Europe during Q1 of 2022 was performing well where of Vinyl Acetate Ethylene redispersible is widely used in construction materials, due to high demand from end user abetting the upward trend of Vinyl Acetate Ethylene redispersible powder prices during Q1 of 2022. VAE in Europe price hovered around USD 3420/Mt during March 2022.
For the quarter Ending December 2021
North American construction sector has been tracing uptrend since a long time in the domestic market. Despite winter season induced temporary dullness to the market, rising raw material cost remained a major cause of concern for key players. Narrowing profit margin were compelling manufacturers to raise their offers, while temporary dullness resisted them from practicing frequent price revisions. In addition, global inflationary pressure was concerning key players in US market, as rising input cost were denting their profit margins. Furthermore, this inflationary pressure was driven after freezing winter storm strike US gulf coast during Q1 2021 and the aftereffect can be observed now in the domestic market. VAE RD powder assessed around USD 2840/MT in USA during December.
Indian construction sectors have been witnessing a stable demand from domestic market since past 2-3 months, post decline in pandemic cases in the country. Procurers revealed that, post decline in pandemic restriction across Indian market, domestic demand elevated under the optimism of festive season in Indian. Furthermore, market restrictions and dual energy policies in China exacerbated the overall price dynamics in Indian market, as imports were getting expensive week over week. Due to these market fundamentals, overall supply burden was shifted to Taiwan only and thus price momentum turned upward, which is still persist in India. In addition, as per market resources, rising cost of other alternative Redispersible powder also influenced the price trend of VAE RD in Indian market. VAE RD price heard hovering around USD 2875/MT during December.
European market has been witnessing disturbance due to exorbitant hike in energy cost which shook the market dynamics of the region. Due stringent scarcity of raw material amidst consistent bounce back in economic activities, prices of several commodities skyrocketed in a very small span of time. Meanwhile, Key global player like Wacker polymer increased their product price by 20% effective from November 2021 due to exponential surge in input cost. Furthermore, additional temporary surcharge was also increased to around USD 655/MT, effective in line with other price revisions. Conclusively, VAE polymer prices remained buoyant throughout the quarter in Europe during Q4 2021.