US VAM export prices rise $75 tonne on tighter supply

04 February 2014 22:03 Source:ICIS News

HOUSTON (ICIS)--US vinyl acetate monomer (VAM) export prices rose $75/tonne as February began, because of tighter supply in Latin America and Europe, sources said on Tuesday.

Free on board (FOB) export prices rose to $1,065-1,165/tonne from $990-1,090/tonne.

Sources attributed the increases to tighter supply in Europe because of plant closings there late last year. The shutdowns made the continent more dependent on US VAM and also raised prices in Latin America, which also depends heavily on American exports.

Dow Chemical issued a price increase of 5 cents/lb ($110/lb) for February, and LyondellBasell sought 2 cents/lb, according to their announcements.

Sellers said much of the February increases have been accepted, though there was not a consensus among Latin American sources.

A producer said FOB prices had increased by $100/tonne, but it could not be confirmed.

Major US VAM producers include Celanese, Dow, DuPont and LyondellBasell.

By Lane Kelley