08 October 2012 16:43 [Source: ICIS news]
BUDAPEST (ICIS)--A growing number of European vinyl acetate monomer (VAM) contracts are being priced on a monthly basis, market participants said on the sidelines of the 46th annual European Petrochemical Association (EPCA) meeting on Monday.
A buyer said its third-quarter 2012 contract was the last one that it would settle on a quarterly basis, and all of its contract prices from October would be negotiated monthly.
The buyer said it was a decision that it had reached in the course of discussions with its supplier.
Another VAM buyer said on Sunday that it had decided to move to monthly contract prices, although it noted that many market participants are still using quarterly pricing for their contracts.
Monthly contract pricing has become increasingly popular over the course of 2012, as it allows for changes in feedstock prices or the supply-demand balance to be reflected promptly in VAM pricing.
Second-quarter contract prices were assessed at €880-950/tonne ($1,143-1,234/tonne) FD (free delivered) NWE (northwest Europe), up by €30-35/tonne from the first quarter. Third-quarter contract prices remain under negotiation.
September contracts were assessed in the range of €885-905/tonne FD NWE, up by €35-45/tonne from August. October prices are still under discussion.
The September ethylene contract increased by €125/tonne from August. The October ethylene price fell by €10/tonne. Ethylene is a major feedstock for VAM.
ICIS has provided monthly contract price assessments for VAM since March 2012.
The annual EPCA meeting runs from 6-10 October.
($1 = €0.77)
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