09 July 2012 18:14 [Source: ICIS news]
The reduction puts US VAM contracts at 54-57 cents/lb, down from 59-62 cents/lb in the first quarter of 2012, as assessed by ICIS.
US ethylene is a major VAM feedstock. The US June ethylene contract settled last week at 39 cents/lb, down 7.25 cents/lb from May on lower spot prices and reduced production costs last month, according to market sources.
The VAM reduction followed a 24% drop in ethylene spot prices in June, stemming from ethane prices plunging to a 10-year low on pressure from ample supply.
The ethylene drop pushed VAM spot prices down also, with free on board (FOB) export prices falling $100/tonne last week to $750-850/tonne from $850-950/tonne in the fourth spot drop in the past month.
Major US VAM sellers include Celanese, Dow Chemical, DuPont and LyondellBasell
($1 = €0.82)
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