US VAM spot range drops 6% on continuing weakness in Latin Am
10 January 2012 18:39 [Source: ICIS news]
HOUSTON (ICIS)--US vinyl acetate monomer (VAM) spot prices dropped by 6% in the past week on continued weakness in Latin America, sources said on Tuesday.
US VAM FOB (free on board) export prices prices ranged $950–1,000/tonne (€741–780/tonne), down from $975–1,100/tonne previously, sources said.
Weakness in Latin American demand has brought US VAM spot prices down over the past three months.
Two of the three largest destinations for American-made VAM are Brazil and Mexico, which reduced their combined shipments from the US by about 3% in 2011 as of October, according to the latest data from the US International Trade Commission.
The largest destination for US VAM exports, Belgium, also reduced shipments by 9% in the year through October.
A buyer in Latin America said spot prices in Mexico and South America dipped as low as $900/tonne in some countries in late December but that the new prices listed above represented a reasonable FOB export range.
The buyer said spot prices had bottomed out and would remain at the current level through the first quarter, because the summer paint season has begun in South America. VAM is a major ingredient in paints and coatings.
Sellers in the US confirmed the late-2011 dip, but said spot prices had bounced back toward $1,000/tonne in early January.
The drop puts spot VAM, at roughly 43–45 cents/lb, almost 15 cents/lb lower than the contract price.
Fourth-quarter contracts for US VAM rolled over last week with a major feedstock settlement, keeping contracts at 57–60 cents/lb ($1,257–1,323/tonne, €980–1,032/tonne), as assessed by ICIS.
Major US VAM producers include Celanese, Dow Chemical, DuPont and LyondellBasell.
($1= €0.78)
For more on VAM visit ICIS chemical intelligence
By: Lane Kelley
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