The ICIS global vinyl chloride monomer (VCM) report is published weekly and covers Asia, Europe and the US. All three regions have price assessments for the spot markets within the report and there is valuable news and analysis within the commentary.
This market intelligence incluces overviews, production news, downstream and upstream movements, economic news, trade statistics and the ICIS Petrochemical Index (IPEX) trends. Whether you are a buyer or seller, this comprehensive business tool will help you to make informed choices.
Vinyl Chloride Monomer Overview Transcript
Vinyl chloride monomer, also known as VCM, is an intermediate in polyvinyl chloride (PVC) production and is largely integrated, with only a small merchant market outside of contract agreements.
About 99% of VCM is used in the production of downstream PVC, which is the main driver of VCM prices.
Other drivers include movements in ethylene and chlorine costs as well as events in the wider chlor alkali chain, as producers need to balance the electro chemical unit in order to make the business profitable.
The economy is also a key driver for VCM consumption, as the PVC market is strongly linked with construction activity and GDP.
In the global VCM market, trading activity has depended on the outcome of PVC negotiations, which have been largely unsuccessful for producers, as poor conditions in the construction market continue to cap potential increases and producers’ efforts to pass higher ethylene costs.
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Vinyl chloride monomer news and market information products from ICIS
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Vinyl chloride monomer: Market overview
Updated to Q2 2016
The ongoing season of maintenance in the European chlorvinyls market is likely to generate additional demand for vinyl chloride (VCM). Merchant spot activity is otherwise expected to be low because the majority of VCM production is integrated into larger chlorvinyl systems.
US VCM prices are expected to continue to rise on the increasing values for PVC, the main consumption sector for more than 90% of VCM. Plant maintenances have restricted supply for April, but US exports to Latin America and Canada are up so far this year.
In Asia, VCM prices are expected to continue to closely reflect PVC prices. While PVC prices were likely to be firmer for the May-lifting period, they could start to soften for the rest of the year as demand in the key India market waned from the monsoon season.
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Vinyl Chloride Monomer Methodology
About Vinyl chloride monomer
Vinyl chloride monomer (VCM) is a colourless gas with a characteristic mild, sweet odour. A toxic and hazardous material, vinyl chloride has been classified as a group A, human carcinogen.
VCM is used almost exclusively in polyvinyl chloride (PVC) manufacture. PVC itself is highly dependent on the construction market, which reflects the ups and downs of the world economies.
With the exception of China, nearly all production is now based on ethylene, which is first reacted with chlorine to make ethylene dichloride (EDC). The EDC is then converted to VCM by thermal cracking. In China, the dominant process to make VCM is based on acetylene produced from calcium carbide which is manufactured from coal and limestone.