15 June 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--Vinyl acetate monomer (VAM) June contract prices have settled in the range of €880–930/tonne ($1,114-1,177/tonne), down by €10–20/tonne from May, sources said on Friday.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
June contracts were mostly heard settled at modest decreases, with stable prices heard towards the low end of the assessed range. Contract prices above the assessed range were also heard.
The main driver for the month-on-month decrease was the €120/tonne fall in the June ethylene contract.
ICIS introduced a monthly contract price assessment for VAM in March 2012.
The market remains largely balanced, although demand for some applications has been impacted by macroeconomic concerns.
In addition, the falling value of the euro in recent months has driven up the cost of imports, which is counterbalancing the effect of declining feedstock costs.
One supplier said that offtake has increased in some cases, in accordance with the customary seasonal trends, but acknowledged that demand is lower than it was during the same period of 2011.
A reseller said that demand is acceptable, but there is little interest in additional supply.
A buyer in the UK said it had secured June decreases exceeding £30/tonne. The buyer said that end-user demand for VAM is below the level expected for the time for year, adding that it has received many offers of spot tonnes.
Spot prices were assessed stable at €860–910/tonne FD NWE. No spot deals were heard this week.
($1 = €0.79)
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