18 October 2013 16:00 [Source: ICIS news]
LONDON (ICIS)--European vinyl acetate monomer (VAM) monthly contract prices have mainly settled within a range of €805-835/tonne ($1,088-1,128/tonne) in October, remaining steady from September values which had risen slightly from August.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
One or two buyers were able to secure a small reduction at the beginning of this month, as demand begins to tail off in the autumn, but subsequent events may have hardened sentiment in the market.
The announcement that INEOS had ceased production at its 300,000 tonne/year plant at Hull in the UK prompted a lot of speculation regarding the supply of VAM in the European market.
Some players thought the market could become tighter as a result of the closure, with the likelihood of higher prices.
However, a consensus emerged that any consequences for supply and pricing will take longer to emerge and no immediate increase in values was foreseen by market sources.
($1 = €0.74)
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