US VAM spot prices drop $50/tonne on further declines in ethylene

19 June 2012 17:49  [Source: ICIS news]

US VAM spot prices drop $50/tonneHOUSTON (ICIS)--Spot prices for US vinyl acetate monomer (VAM) have continued to fall in the past week on declining ethylene costs, dropping $50/tonne (€40/tonne), buyers and sellers said on Tuesday.

The drop in VAM free on board (FOB) export prices to $850-950/tonne from $900-1,000/tonne previously marked the second spot drop in June and the third dip in less than a month.

US spot ethylene fell to a 20-month low last week to 39.50-41.00 cents/lb, but prices have since rebounded a little on firmer feedstock costs and slightly improved demand.

A VAM buyer in Latin America said spot prices were around $810/tonne in some South American countries, but it could not be confirmed. A US seller said most spot business being done was in the $850-900/tonne range.

“This is purely because of ethylene, not demand,” the seller said. “Demand is okay, but this is all driven by what’s happening with ethylene.”

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

($1 = €0.79)

By: Lane Kelley
+1 713 525 2653

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