27 June 2008 19:23 [Source: ICIS news]
HOUSTON (ICIS news)--A US vinyl acetate monomer (VAM) producer said on Friday that two customers had agreed to 6 cent/lb price hikes, marking the first evidence of higher Q3 settlements.
The producer said he expected most of the company's other VAM customers would have to accept the increase, due to the unprecedented surge in energy prices and feedstock costs in recent weeks.
Earlier this week, a buyer said Dow had refused to negotiate its proposed hike. Dow has issued two VAM raises this month, a 2 cents/lb raise on Monday and a 4 cents/lb hike on 2 June, according to the company.
That move was part of Dow's recent rate changes citing unprecedented energy and raw material costs.
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 (€756-788/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 also include DuPont and LyondellBasell.
($1 = €0.63)
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