18 November 2013 22:20 [Source: ICIS news]
CARTAGENA, Colombia (ICIS)--Negotiations are under way for European November vinyl acetate monomer (VAM) contract prices, but expectations are mixed because of the announced closures of two major European plants, a global buyer said on Monday.
“It should be around €820/tonne, but because of the speculation around the two plant closures, producer offers are at €850-870/tonne FD [free delivered] NWE [northwest Europe],” she said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
“Producers are asking for a €30-50/tonne increase, but the demand is not there. Spot prices in October were at €790/tonne FD,” she added.
The closure announcements that are impacting on the negotiations are the INEOS 300,000 tonne/year VAM plant at Hull in eastern England, and the Celanese 200,000 tonne/year VAM plant in Tarragona, Spain.
US-based chemicals producer Celanese said on 4 November that will launch a consultation on the potential closure of the VAM facility in Spain after failing to find a buyer for the site.
The APLA conference ends on Tuesday.
($1 = €0.74)
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