APLA ’13: Europe VAM November contracts complicated by closures

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)

By: Barbara Ortner
+44 20 8652 3214

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