US Q4 VAM contracts roll over with ethylene settlement

04 January 2012 23:16  [Source: ICIS news]

HOUSTON (ICIS)--Fourth-quarter contracts for US vinyl acetate monomer (VAM) rolled over with a major feedstock settlement, buyers and sellers said on Wednesday.

The rollover keeps US VAM contracts at 57–60 cents/lb ($1,257–1,323/tonne, €968–1,019/tonne), as assessed by ICIS.

It came after the initial settlement of the US December ethylene contract, at 54.75 cents/lb, down slightly from 55 cents/lb in November.

Quarterly VAM contracts often settle at the end of the quarter or even a few weeks into the next period because of unsettled contracts in ethylene, which is a crucial VAM feedstock.

VAM contract prices have increased by about 22% from 46–50 cents/lb in January 2011, mainly on higher raw material costs.

FOB (free on board) export prices for VAM are stable at $975–1,100/tonne, sources said.

Major US VAM sellers include Celanese, Dow Chemical, DuPont and LyondellBasell.

($1= €0.77)

For more on VAM visit ICIS chemical intelligence

By: Lane Kelley
+1 713 525 2653

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