US Q3 VAM contracts flat to higher, buyers say
15 July 2008 22:35 [Source: ICIS news]
HOUSTON (ICIS news)--US vinyl acetate monomer (VAM) buyers reported on Tuesday a wide range in third-quarter pricing, saying contract prices held steady in some cases and rose in others.
One buyer obtained a rollover from the previous contract, while others said they had taken or planned to take 6-cent lb ($132/tonne or €83/tonne) increases. Another buyer expected to negotiate a 2-cent hike.
A buyer who accepted a 6-cents/lb increase said suppliers' logic was pegged to rising fuel costs and not to supply/demand figures. The buyer said there was no evidence the VAM market has tightened, with plenty of material available.
Another buyer said freight costs had become crucial because of the runup in fuel prices, with VAM suppliers reluctant to agree to contracts with delivered pricing.
Major US VAM producers include Celanese, Dow Chemical, DuPont and LyondellBasell.
Celanese announced on Monday a proposed 5 cents/lb ($110/tonne or €69/tonne) increase effective 1 August thoughout US,
Dow issued two VAM price increases in late May and early June and is seeking a combined 6 cents/lb hike in the third quarter from its customers, according to the company.
That increase applies globally and is part of Dow's recent rate changes citing unprecedented energy and raw material costs.
($1 = €0.63)
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By: Lane Kelley
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