SAN ANTONIO (ICIS)--US vinyl acetate monomer (VAM) is expected to face upward pressure in April due to tightening supply, according to comments heard on the sidelines of this year’s International Petrochemical Conference (IPC).
Celanese is seeking a list and off-list price increase of 5 cents/lb ($110/tonne) on US VAM and a price increase of $110/tonne on VAM in Mexico and South America effective immediately, according to a press release.
Sources noted that the US is entering turnaround season in the second quarter, with one turnaround imminent in April.
VAM is also facing a supply squeeze in Asia due to turnaround activity in the region. This has the potential to affect trade flows as less Asian material could flow to Europe. In turn, more US material could flow to Europe, putting additional pressure on supply in the US and Latin America.
Additional reporting by Adam Yanelli