16 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European vinyl acetate monomer (VAM) August contract prices were assessed by ICIS on Friday in the range of €800-825/tonne ($1,067-1,100/tonne), unchanged from July.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
Market participants confirmed that August contract prices were mostly rolled over from July. Increases of up to €10/tonne were heard in some cases, but because of the holiday season, producers were unable to recover the €40/tonne rise in the feedstock August ethylene contract.
A producer said its August contract prices were unchanged, but indicated fairly good demand for the time of year. The source said it expects to raise prices next month to improve its margins following the ethylene cost increase.
Another producer said it had maintained stable contract pricing for August, and noted that market fundamentals are steady. The source said that any increase in ethylene prices in September would result in higher VAM prices.
A reseller described the market as depressed and said it had heard spot prices for truck delivery at €770-800/tonne FD NWE. One customer had said its price target for a 1,000-tonne barge would be €750-755/tonne delivered, the reseller added.
Spot prices were assessed stable this week in the range of €780-800/tonne FD NWE.
A buyer said its contracts had rolled over for August at a price slightly below €800/tonne FD NWE. The source said that availability is good and its own demand is acceptable, although other sectors appear to be struggling.
The buyer said it had bought tonnes on the spot market early in the month at €760/tonne FD NWE.
Another buyer said its August prices were almost the same as in July and were still below €800/tonne FD. The source described the market as well supplied.
A third buyer suggested that producers could find it difficult to increase prices in September, although this would depend on demand levels next month.
($1 = €0.75)
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