16 July 2013 21:17 [Source: ICIS news]
HOUSTON (ICIS)--Dow’s proposal to raise US vinyl acetate monomer (VAM) prices by 3 cents/lb ($66/tonne, €51/tonne) puzzled buyers on Tuesday, most of whom said it made no sense considering the recent drop in a key feedstock.
In a customer letter dated today, Dow said the increase was effective immediately but did not give a reason. The hike applies only to VAM in North America.
A buyer cited the recent three-month settlement in ethylene, which was a 2.5 cent/lb decline from the previous settlement, as a reason for doubt.
“I don't get this one,” the buyer said in an email. “They aren't called the Callous Dowboys for nothing.”
VAM buyers last week criticised a similar nomination by Celanese, saying demand was not strong enough to support a hike.
VAM spot FOB export prices held steady during the week at $940-1040/tonne.
Besides ethylene, another VAM feedstock - US acetic acid - dropped $25-50/tonne this week on the restart of a Celanese plant in Clear Lake, Texas, that had been down for repairs following a maintenance turnaround.
“It makes no sense,” another buyer said of the Dow VAM nomination.
Major VAM producers in the US besides Dow include Celanese, DuPont and LyondellBasell.
($1 = €0.77)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections