Deteriorating Supply Fundamentals Impacting Market Sentiments Of Vinyl Acetate Monomer

Texas, USA: Due to worsening supply situations and strong downstream demand in the domestic market, Vinyl Acetate Monomer (VAM) prices are skyrocketing in the United States. Previously, it was thought that the price of VAM would decrease till the second week of June; however, that is not the case now. The situation was exacerbated when a major manufacturer announced force majeure for Acetic Acid, Vinyl Acetate Monomer feedstock, and Vinyl Acetate Monomer itself.

Besides, one more manufacturer had to declare force majeure because it couldn't meet consumer demand for exchange and swaps during planned maintenance. Overall, the supply chain has been substantially disrupted, increasing the price of Vinyl Acetate Monomer in the US market. Furthermore, as the summer months progress, the demand for paints and coatings grows due to increased construction and DIY projects. Meanwhile, because of the increased consumption of cold beverages this season, demand for PET and PTA is increasing, leading to enhanced demand for Acetic Acid in the regional market. Consequently, Vinyl Acetate Monomer prices have been surging as Acetic Acid is the feedstock for the same.

Moreover, due to the disturbed feedstock supply rate, the market value of other Acetic Acid derivatives such as Ethyl Acetate and Butyl Acetate has been impacted. The influence has also been felt on the European market for Vinyl Acetate Monomer. The European market has also been influenced by the shortage of VAM in the United States and has been showing a marginal rise in the prices. As a result, these countries seek out Acetic Acid and Vinyl Acetate Monomer imports from Asian countries in the near future to ease the market sentiments toward these commodities.

According to ChemAnalyst researchers, "the Vinyl Acetate Monomer prices are expected to surge for another week in the USA market amidst worsening supply conditions and soaring feedstock Acetic Acid prices in the domestic market. However, at this point, it is tough to predict the long-term market scenario of Vinyl Acetate Monomer.