Europe VAM Q4 contract price range assessed slightly down

21 December 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European fourth-quarter contract prices for vinyl acetate monomer (VAM) were assessed down by €10/tonne ($13/tonne) at the low end by ICIS on Friday in the range of €850–920/tonne FD (free delivered) NWE (northwest Europe).

Participants in quarterly contracts reported differing outcomes for Q4 settlements, with modest increases and decreases heard, as well as stable prices.

The assessed Q4 contract price range was lowered to reflect the conclusion of some prices in the mid-€800s/tonne FD NWE.

A producer said it had aimed for price stability, and had seen little change on its quarterly contracts.

A buyer said its price had rolled over from the third quarter, and remained close to the high end of the assessed range.

Some buyers indicated price decreases of €15-20/tonne, while others described small increases, based on higher feedstock costs. A few contracts were still under negotiation.

Historically, most quarterly contracts are agreed at the end of the contract period, although some are settled early in the quarter. This can lead to significant variation in outcomes, depending on the time of the settlement.

A large proportion of the European VAM market has now moved to monthly pricing, as most producers no longer offer quarterly contract pricing.

December contracts were assessed down by €20–25/tonne in the range of €830–850/tonne FD NWE on good supply and the seasonal downturn in demand.

($1 = €0.76)

By: Samuel Weatherlake
+44 20 8652 3214

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