18 November 2013 23:28 [Source: ICIS news]
CARTAGENA, Colombia (ICIS)--Much higher spot prices for Latin American buyers of US vinyl acetate monomer (VAM) are coming early next year and maybe sooner, buyers said on Monday.
But buyers on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting said their expectations come not from rising raw material costs but from the announced closing of two European VAM plants announced recently.
“The mess is going to be in January,” the buyer said.
Another Latin American buyer said there will be increases sooner than January – before the end of November, in fact.
“We will not enter any business under $950/tonne,” the buyer said. That fits within the current US FOB export range, though it would raise the bottom of the range.
VAM buyers disagreed as to the low end of the spot range, but they agreed on why prices must go up – tightening of the VAM supply in Europe will require more imports from the US, which also exports to Latin America.
($1 = €0.74)
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