S Korea’s Asacco to raise domestic VAM prices by 14 Sept

10 September 2012 08:28  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Asia Acetyls Co (Asacco) will be raising domestic vinyl acetate monomer (VAM) prices this week as a result of high feedstock ethylene values, a company source said on Monday.

“The targeted [domestic VAM] price is at least won (W) 1,330/kg [($1.17/kg) ($1,176/tonne)] ex-tank from our production facility in Ulsan on the west coast of South Korea,” the source said.

Prices will be at least W70/kg higher than the previous price level of W1,260/kg on 20 July.

The new prices will be effective from 14 September, the source added.

The hike in the price was a result of strong ethylene price, which has seen values rising by a staggering $441/tonne to $1,355/tonne CFR (cost & freight) NE (northeast) Asia on 3 September from $914/tonne CFR NE Asia on 18 June.

One end-user said demand for VAM was soft and buyers may not respond to this increase.

However, several market players said other suppliers and distributors in the domestic market may follow the price direction set by Asacco.

Asacco was running it’s 210,000 tonnes/year VAM plant in Ulsan at 100% of capacity.

Asacco is a joint venture between UK’s BPUS’ Dow Chemical and South Korea’s Samsung.

Other major VAM suppliers in the Asian market include US-based Celanese, Saudi Arabia’s International Vinyl Acetate Co (IVC), Taiwan’s Dairen Chemical Corp, China’s Sichuan Vinylon Works, Japan’s Showa Denko and Japan VAM & Poval.

($1 = W1,130.50)

By: Ryan Yue
+65 6780 4327

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