VAM
27 September 1999 00:00 [Source: ICB]
The European VAM market is moving towards balance, although
the global market is in considerable oversupply
Supply/demand
European demand for vinyl acetate monomer (VAM) in 1998 was
estimated at around 815 000 tonne and to be growing in line with
GDP. Capacity is around 770 000 tonne/year. Three major players,
Celanese, BP Amoco and Acetex hold over 600 000 tonne/year of this
capacity. Imports run on average at about100 000 tonne/year -
mostly from the US. Global capacity is around 4.5m tonne/year with
demand around 3.6m tonne/year, suggesting a substantial capacity
overhang.
As ECN went to press, ethylene shortages had reduced production
at Celanese's German unit and Tarragona was down for planned
maintenance. This, combined with a 4000 tonne off-spec cargo at
Rotterdam, has tightened the European market ahead of quarter four
contract discussions.
Uses
Polyvinyl acetate (PVA) accounts for about 48% of VAM use,
polyvinyl alcohol (PVOH) about 35%, with remaining volumes going to
ethylene vinyl acetate (EVA) polymers and ethylene vinyl alcohol
(EVOH) barrier resins. PVA is used for the production of
water-based latices and adhesives. PVOH is used in packaging film
and glass laminates. EVA and EVOH are finding new uses as
copolymers in speciality adhesives and packaging films.
Pricing
Prices are showing the first signs of recovery having been under
severe pressure for almost two years. Margins are still at
unacceptably low levels. In late 1997, spot prices for T1 material
were at $975/tonne fob Rotterdam, but weak Asian sales led to a
sharp price fall early 1998 and by quarter two European prices had
also dropped below $600/tonne.
European spot T1 prices are now just off the bottom at
$600-625/tonne fob Rotterdam. Contract prices too have edged up a
little to DM1175-1200/tonne. Celanese has announced global price
hikes for 1 October but is, say market sources, meeting opposition
from customers. In Europe, a hike of DM136/tonne is asked and with
the current tight supply other producers are seeking similar
increases.
In the US and Mexico customers have been offered a temporary
voluntary allowance of $22/tonne on the $66/tonne increase asked,
which will be removed if hydrocarbon costs increase more than
anticipated, which now seems likely. In Asia, Celanese is asking
for an increase of $48/tonne.
Technology
VAM is usually produced by reacting vapourised acetic acid and
ethylene with oxygen in a fixed bed reactor using a supported noble
metal catalyst. The VAM is recovered by condensation and scrubbing
and purified by distillation. BP Amoco has developed a fluidised
bed technology, Leap, which is claimed to cut investment costs by
30%. Praxair has received a patent for the use of 99.95% oxygen
which can boost VAM yields by up to 5%. Eastman Chemical has
disclosed a technique in which acetic acid is the sole feedstock.
In a three-step liquid phase process, acetic acid is cracked to
ketene followed by hydrogenation to acetaldehyde which is then
reacted with additional ketene to make VAM in yields as high as
95%.
Health & safety
Exposure to VAM can cause irritation to the eyes, nose and
throat. Contact can irritate the eyes and skin. ACGIH recommends an
exposure limit of 10ppm averaged over eight hours. VAM is a
flammable and reactive chemical.
###8089###
GLOBAL CAPACITIES FOR VAM '000 TONNE/YEAR
| Company |
Location |
Capacity |
|
Porto Marghera, Italy |
55<</TD>
|
| Celanese |
Frankfurt, Germany |
270 |
| Lonza |
Lalden, Switzerland |
25 |
| Acetex |
Pardies, France |
150 |
| Taqsa |
Tarragona, Spain |
150 |
| Wacker-Chemie |
Burghausen, Germany |
86 |
| ZC Oswiecim |
Oswiecim, Poland |
12 |
| Doljchim |
Craiova, Romania |
50 |
| Stavropol |
Budyennovsk, Russia |
30 |
| Celanese |
Alberta, Canada |
85 |
| Celanese |
La Cangrejera, Mexico |
120 |
| Celanese |
Bay City, Texas |
285 |
| DuPont |
La Porte, Texas |
261 |
| Millennium |
LaPorte, Texas |
431 |
| Union Carbide |
Texas City, Texas |
325 |
| Polychem |
Maharashtra, India |
10 |
| VAM Organic |
Uttar Pradesh, India |
20 |
| Vinyl Chemical |
Maharashtra, India |
10 |
| Beijing |
Beijing, China |
38 |
| Guizhou |
Qingzhen, China |
20 |
| Jinshan |
Shanghai, China |
56 |
| Sichuan Vinyl |
Sichuan, China |
90 |
| Denki Kagaku |
Goi, Japan |
66 |
| Nippon |
Mizushima, Japan |
140 |
| Shin Etsu |
Sakai, Japan |
80 |
| Showa Denko |
Ohita,Japan |
150 |
| Asian Acetyls |
Ulsan, Korea |
150 |
| Dairen |
Kaohsiung, Taiwan |
100^ |
| Chemical |
Mailiao, Taiwan |
240* |
* onstream end 2000
< scheduled for closure when Hull plant is onstream. Porto
Marghera tolling contract with BP Amoco runs out in 2000
+ purchase from Rhodia
^ Will be converted to 1,4-butanediol production when Mailiao
plant comes onstream end-2000.
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