Chinese Market Witnessing Continuous Plunge in Vinyl Acetate Monomer (VAM) Prices

Tianjin, China: Vinyl Acetate monomer (VAM) prices have declined for several weeks in the Chinese domestic market. The pricing trend of VAM remained in the downward direction for the current week. With some ups and downs, the price of acetic acid was mainly on the lower side as June ended. The first week of July will only see the drop in VAM prices when it concludes.

The decrease in trading activity for Vinyl Acetate Monomer is the leading cause of this dip in price. China is among the top producers of VAM, which it primarily distributes to countries like India, Belgium, Thailand, etc. The prices have decreased because of a notable decline in Vinyl Acetate Monomer exports. Additionally, there was a decline in the price of Vinyl Acetate Monomer due to sluggish demand from downstream sectors for paints, coatings, adhesives, textile, etc.

The downstream industries of VAM are buying the product in extremely small quantities, typically only what they require. Manufacturers of Vinyl Acetate Monomer (VAM) have been lowering their profit margins while selling their products at much lower costs. The pricing trend is also supported by the fact that the prices of all negotiated transactions have been declining. Furthermore, feedstock Vinyl Acetate Monomer (VAM) prices have slumped in the Chinese market. Overall, less downstream demand for VAM, lower purchasing power, decreasing raw material market value, and less trade activity negatively impacted the market's perception of VAM in China.

ChemAnalyst anticipations, "In the upcoming days, the Vinyl Acetate Monomer (VAM) market would be more clear and consistent, prices are likely to continue showcasing downward market sentiments. The Chinese market scenario for VAM will likely showcase stagnancy with marginal changes in the coming days. However, if downstream demand recovers in the market, the sentiments of Vinyl Acetate Monomer market might change in China."