For the Quarter Ending March 2023
North America
In the North American region, the VAM market experienced a bearish sentiment during the first quarter of 2023, with prices declining due to lower demand from domestic and international markets as well as higher supply levels. The restart of several plants from turnarounds and fewer shutdowns led to an increase in VAM inventories. Additionally, there was a decrease in demand from Polyvinyl Alcohol, Polyvinyl Acetate, and other value chains due to reduced purchasing activities from end-user industries such as adhesives, paints, and coatings. After Federal Reserve increased its interest rates to curb the rising inflation in the country, the price increment in the commodities was not observed in the US. Consequently, the price of VAM dropped to USD 1870/MT FOB New York and USD 1820/MT FOB Texas as of March 31.
Asia- Pacific
During the first quarter of 2023, VAM prices in the Asia-Pacific region demonstrated an overall upward trend. In China, the VAM market had a positive start to the quarter, as market activity picked up following the government's decision to abandon its zero-COVID policy. This resulted in increased demand for the product, primarily due to a rise in procurement from downstream industries such as Polyvinyl Acetate and Polyvinyl Alcohol. Additionally, after the Lunar New Year holiday, market participants restocked the available material. Also, Acetic acid and Ethylene prices continue to rally in the Chinese market, increasing cost support for VAM. In March, there was a slight decrease in prices following a sustained rise because purchasing activities from Asian and European countries toned down amid weakened demand from the paint and coatings industries which resulted in fewer offtakes from the VAM market, leaving market participants to clear their stocks at lower prices. Therefore, the VAM prices for FOB Dalian settled at USD 1200/MT on March 31.
Europe
VAM prices showed fluctuation in the European region during the first quarter of 2023. In the first two months of Q2, the German market saw an overall increase in VAM prices due to higher production costs, lower inventory levels, and increased procurement. Market participants reported improved consumption from downstream paints and coatings and other industries improved, thus increasing the demand pressure on the VAM. Meanwhile, supply chain dynamics remained stable, resulting in normalcy in trading. However, the VAM market showed bearish sentiments in the final month of Q2, and prices decreased due to a drop in feedstock Acetic Acid prices. Additionally, operating rates were reduced in the domestic market owing to fewer offtakes from downstream industries. Moreover, cheaper imports from the Asian market also put downward pressure on VAM prices. Therefore, the price of VAM reached USD 1520/MT FD Hamburg on March 31.
For the Quarter Ending December 2022
North America
Vinyl Acetate Monomer Prices fell mainly as feedstock Acetic acid prices continued their decline throughout Q4 of 2022, and energy prices stabilized in the US market while imported Vinyl Acetate Monomer prices have also remained comparatively lower than the domestic prices. Production rates remained weak in the wake of stable consumption rates in the domestic market. The cost of production remained stable as Natural gas prices fell while feedstock Acetic acid prices dropped persistently. Meanwhile, imports from Asia pacific region have strengthened amid a decline in freight charges. Demand from downstream Paints & coatings and Adhesives and polymers industry declined as the construction industry witnessed a drop in demand during the ongoing winter. Meanwhile, consumer sentiment continued to remain sluggish in the US market, while demand from the international market also remained stable as Europe continued to face soft consumer sentiment. Meanwhile, the US Federal Reserve continued to tighten the monetary policy to curb inflation.
Asia Pacific
Vinyl Acetate Monomer prices continued their decline during the last quarter of 2022 as the demand dynamics from downstream industries remained sluggish. Buying sentiment in the market has been termed as rigid due to snuck consumption rates and limited queries, as reported by several market participants. Additionally, feedstock Acetic acid prices have remained sluggish, resulting in weak cost pressure on downstream Vinyl Acetate Monomer. Meanwhile, covid lockdowns and the underwhelming performance of the construction industry contributed to soft consumer sentiment and weakened consumption rates.
Europe
During the 4th quarter of 2022, the market sentiment in the European Vinyl Acetate Monomer remained sluggish as the market participants reported limited queries from downstream users, as the West faced sluggish consumption rates owing to soft consumer sentiment. Meanwhile, the threat of a recession continues to ease, as reported by several firms. Meanwhile, feedstock Acetic acid prices have dropped in the European continent easing the cost pressure, while imports from the Asia pacific have remained ample, increasing the material available in the European market in the last quarter. Port congestion and labor strikes highlighted the first half of the quarter, which eased during the second half of the quarter.
For the Quarter Ending September 2022
North America
In the North American region, Vinyl Acetate Monomer prices declined during the third quarter of 2022 due to ample material availability in the domestic market and weak demand from the downstream industries. The performance of the construction industry remained comparatively weak in the third quarter, which limited the consumption rates of Vinyl Acetate Monomer. Meanwhile, the supply chain remained under pressure as the port of Houston and several other ports witnessed port congestions, hampering the trading activities in the region. Furthermore, the decline in feedstock Acetic acid prices eased the cost pressure from downstream Vinyl Acetate Monomer. Thus, after the conclusion of Q3, Vinyl Acetate Monomer prices were assessed at USD 2264 per MT on a FOB basis.
Asia Pacific
Vinyl Acetate Monomer prices sharply declined in the Asia Pacific region as the feedstock prices deteriorated while the demand remained under pressure during the third quarter of 2022. Feedstock Acetic acid prices constantly dropped, which eased the cost pressure while stable to weak demand from downstream industries remained, resulting in soft demand pressure over Vinyl Acetate Monomer. In Northeast Asia, a typhoon-ravaged western Japan and parts of South Korea, hampering port activities. The reduced port movements have increased the transit time, and prolonged shipment time has been reported, which impacted the supply dynamics as the port activities in Asian ports were halted in September. However, weak demand dynamics meant a limited impact of curtailed supply on the Vinyl Acetate Monomer prices. Hence, after the conclusion of Q3, Vinyl Acetate Monomer prices were assessed at USD 1464 per MT FOB Tokyo.
Europe
In the European region, Vinyl Acetate Monomer prices constantly dropped throughout the third quarter of 2022 owing to cheap imports from the US and Singapore, key exporters of VAM globally. Meanwhile, demand from the downstream construction industry remained snug. Traditionally, Q3 has been the peak season of Vinyl Acetate Monomer demand; however, 2022 observed a substantial demand drop as consumer sentiment remained depressed owing to high inflation rates, which intensified the speculations around a European recession after several decades. Furthermore, in terms of domestic production, LyondellBasell announced production cuts during the quarter. Thus, after the conclusion of Q3, VAM prices were assessed at USD 1966 per MT FD Immingham.
For the Quarter Ending June 2022
North America
In North America, Vinyl Acetate Monomer (VAM) prices rose steadily during the second quarter of 2022 due to constrained supply and strong downstream demand. VAM prices climbed at the start of April because of rising feedstock Acetic Acid prices, higher demand for paints, adhesives, and textile, and elevated upstream expenses. The prices kept growing due to increased exports to the European nations until the final week of April. The same supply issues persisted in May and raised the price of VAM. Additionally, major manufacturers like Celanese and INEOS issued force majeures on VAM and feedstock Acetic Acid, which worsened the June situation and increased the price of Vinyl Acetate Monomer in North America. The estimated cost of Vinyl Acetate Monomer at FD Hamburg was USD 2600/MT in April, which escalated to USD 2780/MT in June.
APAC
Though the prices of feedstock Acetic Acid were dropping in China during the second quarter of 2022, Vinyl Acetate Monomer (VAM) value increased in the considered period. VAM prices observed a significant inclination of 2.17% between April and June. This price escalation was backed by robust demand from end-user industries such as paints, coating, textile, and adhesives. The assessed price value of Vinyl Acetate Monomer (VAM) at FOB Dalian was USD 2300/MT, which increased to USD 2350/MT. The domestic Indian market for Vinyl Acetate Monomer (VAM) experienced downward momentum in the pricing trend of Vinyl Acetate Monomer (VAM). The overflowing inventories and weak downstream demand were the significant factors contributing to the plunge in VAM prices. Vinyl Acetate Monomer (VAM) prices at Ex-Silvassa were USD 2513 MT in June.
Europe
Due to supply limitations and the energy crisis, the market value of Vinyl Acetate Monomer (VAM) in Europe increased consistently during the second quarter of 2022. The supply of VAM and feedstock acetic acid in the market was limited as significant manufacturers like Lyondell announced force majeures. Additionally, the price of the upstream, Methanol was skyrocketing throughout the same period, raising the already elevated price value of Vinyl Acetate Monomer. Additionally, the market value of VAM in the European nations was further aggravated by rising energy costs and freight fees along with the tensions surrounding the Russia-Ukraine war. As a result, the Vinyl Acetate Monomer (VAM) FD Hamburg prices were USD 2600/MT in April and USD 2750/MT in June, hiked by 5.77%.
For the Quarter Ending March 2022
North America
In Q1 2022, the Vinyl Acetate Monomer (VAM) price slipped in the first half of the quarter due to weak market sentiments and sufficient product availability. The exports to the European region and Canada were reduced due to the tepid market and inventories' stockpiling. However, in the second half of the quarter, the prices surged and were USD 2680/ton FOB New York. The market was seen to be driven by flooding interest and higher input costs. Downstream adhesive ventures saw development from consumers and businesses as modern exercises quit slacking, bringing about cost climbs. The sales and deals of the significant makers went up with the expansion in its utilization from the purchaser's end. However, spot costs of feedstock Ethylene had expanded given adequate supplies because of max ethane use in wafers. Compared with the previous quarter, the price of the Vinyl Acetate monomer slipped to 6.1%, when compared with the past quarter.
Asia Pacific
In this quarter, the price of VAM in China slipped in the first half, where the prices on Jan 2022 were USD 2291/ton FOB Dalian. Feedstock Ethylene and Acetic acid prices were also reduced due to oversupplies and deteriorating demand in the regional market of China. Weak market sentiments and sufficient product availability resulted in such a trend. Feedstock Acetic acid prices plummeted with oversupply exacerbated. However, in the second half of the quarter, the prices surged to USD 2192/ton FOB Dalian supported by the bullish upstream crude and Naphtha market. Major adhesive producers had also flooded the prices of their products by squeezing profits and robust demand. One of the variables that hinders the development of the adhesive and sealants industry is oil costs and the resulting expansion in raw material costs. Downstream EVA market was also flooded with expanding photovoltaic cells' utilization in solar power generation and agricultural ventures. The costs sneaked past 11.8% in this quarter in China when compared with the previous one. In India, the prices towards the end of the quarter were assessed at USD 2623/ton Ex-Hazira.
Europe
In this quarter, the price of Vinyl Acetate Monomer (VAM) remained on the higher end supported by strong market demand and insufficient product availability. Imports from US and other European region increases with high freight cost and transportation cost. Russia-Ukraine conflict surged the price of Natural gas which impacted the prices in the regional market. In Germany the price of Vinyl Acetate Monomer in the month of Jan 2022 observed to be USD 2365/ton FD Hamburg. Major adhesive producers of VAM had increased their product prices in their domestic market. Traders started purchasing the product in bulk which disrupted the supply/demand equilibrium affecting the price trend.
For the Quarter Ending December 2021
North America
Compared to the previous quarter, the prices of VAM in North America observed to be on the higher end in Q4 2021. Supply of Feedstock acidic acid and Ethylene was tight for major part of the quarter that’s why VAM remained mostly in uptrend throughout the quarter. Slight stability was spotted toward 2nd half of the December. When compared monthly, the demand for VAM in October was observed to be on high side compared with the rest two months. In October, the prices increase due to supply shortage which maintain the demand robust but in rest of the two months the major VAM players had provided the sufficient stock and the prices fell comparatively. Downstream Construction, Paint and coating industry also struggled with drastic price increase and shortage of Acetic acid affected their production.
Asia Pacific
The Asian VAM market remained burst in Q4. In China the prices were maxed to $2740/ton FOB Dalian due to unprecedented robust trading after holidays uplifted the market sentiments and induced port congestion along with limited freight vessel availability. However, the small relaxation in prices were seen in November with stable supply and moderate imports from Taiwan, Singapore, and Saudi Arabia. In India, the VAM prices continued to climb in the domestic market buoyed by firm demand for household applications. Pidilite Industry, a renowned player in the Indian VAM market in a recent update revealed the ease in pandemic situation has made people to focus on the home and office renovation projects due to an expected shift in their lifestyle in the coming months. In line with the improvement in demand for construction materials, VAM prices thus reached $2345 per MT Ex-Hazira on 12th November.
Europe
In Q4, the prices of Vinyl Acetate Monomer (VAM) rushed to the new heights with increased feedstock Benzene and Ethylene prices. A significant reduction of long-haul shipments Europe to Asian market, weaker cracker operations in the fourth quarter from low margins and logistic constrains also accounted for the tight balance. There was a spike in VAM pricing following the energy curtailment as many plants were shut down due to the government intervention. High consumption of energy in the manufacturing of Acetic Acid has also influenced the high costs. Polymer, adhesives, and coatings have all had considerable downstream demand for the raw material VAM
For the Quarter Ending September 2021
North America
In North America, an appreciable rise in Vinyl Acetate Monomer (VAM) prices was observed during the third quarter. The shutdown of LyondellBasell’s La Porte plant in Texas after the accident of chemical leak in July gave another setback to the regional market. As this incident hampered VAM production, VAM producers were unable to keep pace for both domestic as well as export market which consequently pushed the VAM prices throughout the quarter. In addition, calamities like Ida hurricane further tightened VAM availability in the region as industrial infrastructure remained shut in August. FOB Texas VAM monthly average prices assessed at USD 2680/MT in September.
Asia Pacific
In Q3, spike in the prices of VAM was observed in the Asian market backed by the constrained supplies of feedstock Acetic Acid and sturdy demand from the downstream sectors. In addition, Celanese Corporation in China announced a fore majeure over VAM plant which further intensified the shortage of VAM in Asia. Moreover, a continuous increment in the values of Acetic Acid in the regional market backed by the supply crises due to the Ida hurricane also send ripples to the prices of VAM. In India, the shortage of shipping containers also levied an upward push upon price fundamentals of derivatives like VAM. Overall, the demand-supply gap widened substantially, throughout the quarter. Ex-Hazira VAM monthly average prices stood at USD 2097.59/MT showcasing a hike by around USD 246.13/MT since July in India.
Europe
In the European region, VAM supplies were impacted during the third quarter backed by the delayed imports due to the supply chain disruption caused by Ida hurricane in the Gulf Coast of US in August. In addition, congestion on several ports of China as well as soaring freight costs also contributed to the hike in prices of VAM in the region. Overall demand witnessed a spike from the downstream sectors in contrast to previous quarter. FD Hamburg VAM monthly average prices settled at USD 2246/MT in September.
For the Quarter Ending June 2021
North America
Aftermaths of the US freeze fallout severely hampered the North American Vinyl Acetate Monomer (VAM) market in Q2 as the market supplies were sluggish due to a series of plant closures. Some of the plants restrained from operating at full efficiencies amidst restricted availability of the feedstock Acetic Acid. US exports of VAM to the European region were almost negligible till May. Demand surged from the construction sector with improved offtakes of the acetyl derivatives from the paints and coating industries. Enquiries were also improved from the packaging and adhesives industries. Prices remained upbeat throughout the quarter with FOB Texas offers settling at USD 2390 per tonne in June, observing an increment of nearly 30% from the assessments in March 2021.
Asia Pacific
During the first half of the second quarter, the supplies of VAM in the Asia Pacific region were severely impacted with some plant turnarounds reported in Taiwan, Japan, and South Korea. Some suppliers were heard diverting shipments to the European region in anticipation of better netbacks. Prices in China eased in the latter half of the quarter after surging to historic highs in April. FOB Shanghai price was assessed at USD 1929 per tonne in June. Demand was high throughout the quarter in China due to new EVA capacities by Sinochem Quanzhou and Sinopec Yangzi Petrochemical.
Europe
VAM supplies in the European region were improved compared to the previous quarter owing ease in shipments from the USA as the industrial infrastructure in the US Gulf Coast (USGC) region restarted. Whereas the Asian cargoes were delayed due to the Suez Canal blockage in April starting. Market sentiments were bolstered as traders replenished the inventories which caused the slowdown in recovery pace of VAM supplies to the European market. Demand observed a seasonal hype from the construction sectors with better offtakes from the adhesives industries.
For the Quarter Ending March 2021
North America
The VAM market in the region was tight during the Q1 of 2021, as the several plant outages were heard for nearly two weeks due to sub-freezing temperatures in Texas. Due to the domestic market volatility and surged prices of VAM across the US, the key VAM exporter, buyers shifted towards the Asian suppliers to balance out market dynamics. In the meanwhile, improved consumption from the downstream building & construction and paints & coatings surged the demand of VAM in the region. US VAM exports showed marked reduction during the quarter with the prices settling at USD 1350 per MT FOB Texas in the final week of March.
Asia-Pacific (APAC)
VAM supplies were tight in the first half of the Q1 2021, as the several plants in China remained under maintenance shutdown. However, the situation improved towards the quarter end as the various plants resumed operations. The global supply shortage due to several plant turnarounds in US provided better netbacks to the Asian VAM suppliers, who implemented a positive revision in their offer prices amidst the supply shortage. The demand during the period improved as the utilization from the downstream sector increased with economic rebound in China. The Indian market faced inflationary pressure in VAM that affected the gross margins of most consumer companies in the near term. With the market translating strong influence of global supply shortage, VAM the prices in India were averaged around USD 1215/tonne during the quarter.
Europe
VAM supplies remained tight throughout the quarter, as maintenance shutdowns were scheduled at various facilities across the region. Market was unstable throughout the quarter amid the second COVID wave, however the mass vaccination program kept market optimism high in the European region. The deficit in imports from the US was balanced by the Asian VAM, as capacity utilization improved from the downstream adhesives sector.
For the Quarter Ending September 2020
Asia
Spate of plant turnarounds from Taiwan and South Korea throughout the third quarter of 2020 tightened the overall availability of VAM cargoes in Southeast Asia. Thus, prices of VAM in Q3 of 2020 Southeast Asia averaged around USD 807 per MT influenced by its healthy demand fundamentals and scarce product availability. Despite the restricted availability, paramount producers like Celanese and Dairen Chemicals continued to operate their plants at reduced rates amid fears of uncertainty prevailing from the second wave of Coronavirus in several parts of the region. Downstream demand for derivatives like Ethyl Vinyl Acetate (EVA) and Poly Vinyl Acetate (PVA) witnessed marginal recovery in Northeast Asia as countries restarted their business activities to save the sputtering economy.
North America
Market fundamentals of Vinyl Acetate Monomer (VAM) in North America remained weighed up buoyed by strong values of feedstock acetic acid and series of plant outages in the Gulf coast region due to a wave of seasonal hurricanes. Since much of the US VAM is used for catering the global demand, abrupt outages and logistic concerns restricted the trading activities, thereby confining the export revenue of the region. As per Celanese Corporation, 10% quarterly increment in demand from its major importer China was registered but the gains were overshadowed by the consistent availability of material due to high production rates in the native country.
Europe
The European Vinyl Acetate Monomer (VAM) market witnessed severe supply issues primarily due to the turnaround of Celanese plant in Germany followed by few other temporary turnarounds in the region. Strong consumption from paints and coating sector on the arrival of summer season in the country bolstered its demand fundamentals. Although supply issues were resolved by the end of the quarter, momentum of recovery was hindered by the buzz of resurgence of Coronavirus in several parts of the region.
