04 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European vinyl acetate monomer (VAM) Q3 contract prices were assessed by ICIS on Friday in the range of €810-860/tonne ($1,110-1,178/tonne), unchanged from the second quarter.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
Market participants said that prices were generally agreed in the low-to-mid-€800s/tonne FD NWE. Rollovers, decreases and increases were indicated, but the overall trend was steady.
Monthly contract prices increased by €5-10/tonne over the course of the third quarter.
Many October contract prices are still under discussion, although a producer that had targeted increases of €10-15/tonne said it had agreed to roll prices over at €800-810/tonne FD NWE. The source cited the early settlement of the October ethylene contract at a €35/tonne decrease.
A second producer said it is still negotiating its October VAM contracts.
A buyer had agreed to a rollover for its October contract prices in the mid-€800s/tonne DDP (delivered duty paid) central Europe.
Another buyer said it is pushing for reductions of €20-30/tonne, based on a well-supplied market, cheaper ethylene and an expectation that the VAM market will remain weak for the remainder of the year.
The source said it had purchased a bulk cargo on the spot market for delivery next week at €740/tonne DDP NWE.
A third buyer said that spot tonnes are available at €760-770/tonne FD, while a fourth said that spot prices are stable to slightly lower in the high €700s/tonne FD.
Producers felt that prices in the mid-€700s/tonne FD are not representative of the market.
One said it is discussing spot sales at €810/tonne delivered central Europe, while another suggested that any increase in availability on the spot market is likely to be temporary.
Spot prices were assessed on Friday in the range of €770-810/tonne FD NWE, down by €10-20/tonne.
($1 = €0.73)
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