14 December 2012 23:59 [Source: ICIS news]
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis. ICIS introduced the monthly contract price assessment for VAM in March 2012.
Most contracts were reported settled at decreases of €20/tonne. The price reductions were the result of good availability and the seasonal downturn in demand.
One producer said it had recorded slightly better demand in December than it had expected, but was not sure why.
A reseller said it was not receiving many enquiries for tonnes, owing to the approaching year-end.
Spot prices were assessed unchanged at €800–840/tonne FD NWE this week.
Participants in quarterly contracts are in the process of concluding their fourth-quarter prices. Rollovers and modest decreases have been indicated for most settlements so far.
Most quarterly contracts are agreed at the end of the contract period. A large proportion of the market has now moved to monthly pricing, as most producers no longer offer quarterly contract pricing.
Looking ahead to the first quarter of 2013, most sources were anticipating little change in feedstock ethylene prices, and expected VAM prices to be fairly stable as well.
A buyer said it expects good availability to persist into the first quarter, but suggested that some recovery in demand is likely thereafter. A producer noted that buyers will need to restock in January.
($1 = €0.76)
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