11 June 2013 16:05 [Source: ICIS news]
HOUSTON (ICIS)--US vinyl acetate monomer (VAM) prices dropped by $10/tonne (€7.50/tonne) during the past week because of a dip in a key raw material, sources said on Tuesday.
The VAM export range fell to $940-1040 tonne FOB (free on board) from the prior $950-1050/tonne, because of a drop in US ethylene.
Spot ethylene slipped to 52.75-53.50 cents/lb during the week from 53.00-56.00 cents/lb a week earlier, on cheaper feedstock costs and lacklustre demand.
It was the second spot price reduction for VAM in less than a month. That range dropped by $50/tonne in mid-May because of plants restarting after turnarounds.
Ethylene historically has been a big determinant in the US VAM price, representing about 38% of the monomer’s value in many formula-based contracts.
Major US VAM sellers include Celanese, Dow Chemical, DuPont and LyondellBasell.
($1 = €0.75)
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