US Dow refuses to budge on July VAM hike - buyer

26 June 2008 18:21  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical has refused to negotiate its proposed third-quarter global increase on vinyl acetate monomer (VAM), a buyer said on Thursday.

With two hikes in the past month, Dow is seeking a combined 6 cents/lb ($132/tonne or €84/tonne) raise on VAM effective 1 July. It announced a 2 cents/lb raise on Monday and a 4 cents/lb hike on 2 June.

The increase is part of Dow's recent rate changes citing unprecedented energy and raw material costs.

The buyer said a hike of 3-4 cents/lb was the best compromise, if any, that could be expected from Dow. The buyer's other supplier also has nominated a similar increase.

Celanese issued a 6-cents/lb increase proposal for VAM earlier in the month.

US VAM contract prices during the week ended 23 June were assessed at 63-67 cents/lb and FOB (free on board) export prices at $1,200-1,250/tonne, according to global chemical market intelligence service ICIS pricing.

VAM is used to make emulsion polymers, resins and other intermediates for paints, adhesives, coatings, textiles, wire and cable, laminated safety glass, packaging, automotive parts and acrylic fibres.

US VAM producers include Dow, Celanese, DuPont and LyondellBasell.

($1 = €0.64)

For more on vinyl acetate monomer visit ICIS chemical intelligence
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By: Lane Kelley
+1 713 525 2653

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