12 October 2010 05:36 [Source: ICIS news]
By Helen Lee
VAM prices were assessed at $900-910/tonne (€648-655/tonne) CFR (cost and freight) CMP (China Main Port) in the week ending 8 October, representing a 20% surge from levels 10 weeks ago mainly caused by tight supply, based on ICIS data.
Over this period, inventory of the material at Chinese ports continued to be drawn down, while imports were becoming scarce with major regional VAM plants running at reduced rates, market sources said.
The recent upswing in crude and naphtha values also helped boost sentiment in the VAM market, industry sources said.
“The mood is strong and supply is getting tight so prices should prevail on a steady-to-firm trend,” said a key southeast Asia-based distributor, citing that regional prices followed the lead of Chinese market, which staged a strong comeback from the holidays.
Major VAM producers in
This partly caused
Lean imports into
“Inventory and supplies at the ports are tightening,” said a Shanghai-based market observer.
VAM is a key intermediate for making polymers and resins for use in adhesives, coatings, paints, films, textiles and other end-products.
Over the long term, demand for the material would likely be led by the derivative ethylene vinyl acetate (EVA) and solar panel/photovoltaic sector, market sources said.
EVA which contains less than 50 percent vinyl acetate (VA) - is mainly used for films and wire and cable insulation and account for about 7 percent of VAM used.
The global photovoltaic sector, on the other hand, was expected to grow 25% annually and should raise consumption of higher VA content EVA and upstream VAM cargoes, market sources said.
The major VAM producers in
($1 = €0.72)
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