For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for VAE Redispersible Powder (VAE RD Powder) experienced an increasing to pricing trend, driven by a balanced supply-demand environment. Several key factors shaped the market during this period, including steady demand from the construction sector, sufficient product availability, and consistent pricing for imported materials.
Despite global challenges such as supply chain disruptions, labor disputes, and weather-related obstacles, the market remained resilient, allowing prices to hold firm. In the USA, the VAE RD Powder market showed notable price fluctuations, with a 2% increase compared to the previous quarter. This upward movement was largely driven by sustained construction activities and stable market sentiment.
Notably, the price of VAE RD Powder DEL Texas surged by 10.8% in July, supported by strong regional demand, before stabilizing for the remainder of the quarter. Compared to the same quarter in 2023, prices remained stable, reflecting positive market conditions and optimism. Overall, the North American VAE RD Powder market showcased a steady performance in Q3 2024, supported by solid demand and a favorable supply environment amidst broader global disruptions.
APAC
In Q3 2024, the VAE Redispersible Powder market in the APAC region experienced a notable decline in prices, driven by multiple factors contributing to a negative pricing environment. Seasonal impacts, particularly heavy rainfall, disrupted construction activities, reducing the demand for VAE Powder. Additionally, logistical issues and supply chain disruptions further strained the market, resulting in an oversupply situation that intensified the downward pressure on prices. India, a key market in the region, saw significant fluctuations, with a 3% price drop from the previous quarter as demand waned. Although certain periods exhibited stability, the overall trend for VAE Powder in the region remained bearish. By the end of the quarter, the price of VAE Powder Tg Harder General Grade Ex-Mumbai decreased by 5.7%, highlighting the persistent downward trajectory. Despite the challenges faced, no plant shutdowns were reported, which helped maintain product availability and contributed to market stability amidst declining prices. The quarter overall was marked by a difficult pricing environment, underscored by weakened demand and supply chain inefficiencies across the region.
Europe
Throughout Q3 2024, the European market for VAE Redispersible Powder exhibited a trend of stable to increasing prices, despite a mix of challenges influencing market dynamics. Demand across the region was moderate to low, largely due to difficult economic conditions both locally and internationally. The construction industry, a major consumer of VAE Powder, encountered significant obstacles, resulting in subdued consumption levels. On the supply side, the market maintained moderate inventory levels, with no shortages reported; however, cautious trading practices emerged due to rising global freight rates and port congestion disruptions. The market initially experienced a bearish trend, leading to a price decrease driven by low demand and economic uncertainties. Germany, in particular, faced notable price fluctuations influenced by weak domestic demand and global shipping challenges. Despite these fluctuations, prices in July witnessed an increase of 8.3% for VAE Powder Tg Harder (General Grade) FD-Hamburg, stabilizing for the remainder of the quarter. This stability was further supported by the absence of reported plant shutdowns during this period, contributing to a resilient market environment amid the prevailing uncertainties. Overall, the quarter reflected a cautious but stable pricing landscape for VAE Redispersible Powder in Europe.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for VAE Redispersible Powder experienced a significant decline in prices, driven by multiple key factors. The market faced intense pressure from cheaper imports, especially from Europe, where surplus production and aggressive shipment strategies led to a price drop. This influx of low-cost imports disrupted local pricing structures, forcing North American suppliers to lower prices to stay competitive.
Additionally, the global freight industry saw a dramatic surge in rates, adding complexity to the supply chain and indirectly affecting VAE Redispersible Powder prices. In the USA, the most pronounced price fluctuations were observed. The overall trend showed a bearish sentiment, driven by weak demand from the downstream construction industry, which continued to struggle with declining activity levels. Seasonal factors also played a role as construction spending decreased, particularly in non-residential sectors, exacerbating the downward pressure on VAE Powder prices. The correlation between reduced construction activity and lower VAE Powder prices was evident as the market tried to adjust to the diminished demand.
Compared to the previous quarter, there was a notable 6% decline in prices, reflecting ongoing challenges in balancing supply and demand. The first half of the quarter saw a more substantial price drop of 14%, highlighting the initial impact of cheaper imports and subdued domestic demand. The quarter concluded with VAE Powder Tg Harder General Grade prices at USD 1850/MT DEL Texas, marking a continued negative pricing environment. Disruptions such as the collapse of the Baltimore bridge further complicated supply logistics. Overall, the pricing environment for VAE Redispersible Powder in North America during Q2 2024 was distinctly negative, driven by external competitive pressures and internal market weaknesses.
APAC
In Q2 2024, the VAE Redispersible Powder market in the APAC region experienced a bearish pricing environment. In April 2024, the price of the product decreased by approximately 4.7%, influenced by the abundant availability of the material and a decrease in freight rates. This reduction in costs encouraged imports and ensured a smooth flow of cargoes from overseas, impacting the price trend. Additionally, demand from the downstream construction industry was low due to heavy rainfall across India, which disrupted numerous projects and decreased the need for VAE Powder. The monsoon, beginning on June 1, brought a surplus of rainfall, particularly in northwest India and the southern peninsula. However, in the last two months of the quarter, the price of the product remained stable in the Indian market. This equilibrium was maintained by a balanced demand-supply dynamic and relatively steady economic conditions. Despite minor fluctuations in market sentiment and external pressures like global shipping disruptions and geopolitical tensions, the overall pricing for VAE Powder remained consistent. The quarter concluded with the price of VAE Powder Tg Harder General Grade Ex-Mumbai at USD 1698/MT, reflecting a stable pricing environment driven by balanced market forces and a robust economic foundation.
Europe
In Q2 2024, the European VAE Redispersible Powder market experienced a notable decline driven by several key factors. A significant drop in upstream crude oil prices led to reduced production costs for manufacturers. This decline in production costs, however, did not boost demand, as the construction sector faced ongoing challenges from high interest rates and inflationary pressures. While the supply chain remained stable, with no major disruptions or plant shutdowns, global freight rates surged, adding to the market's bearish trend by increasing shipping costs and reducing overseas demand. Despite stable domestic supply levels, demand for VAE Powder remained weak, exacerbating the negative market sentiment. In Germany, where price adjustments were most evident, the market saw a sharp 6% decrease from the previous quarter, with a 14% drop in the latter half of the period. By the end of the quarter, VAE Powder Tg Harder (General Grade) FD-Hamburg was priced at USD 1800/MT, reflecting the bearish and challenging market conditions in Europe.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of VAE Redispersible Powder in the North America region remained stable overall. Various factors influenced market prices during this period. The region experienced a steady supply of VAE Redispersible Powder, with no significant disruptions in the domestic supply chain.
However, demand for the product was moderate, with limited growth in the construction industry. The manufacturing sector faced challenges, and borrowing costs remained high. Additionally, the cost of imported material from Europe remained low due to abundant supply, contributing to the overall stability in prices. Within the North America region, the USA saw the maximum price changes for VAE Redispersible Powder. In January 2024, prices increased by 5% due to a rebound in construction costs and significant growth in ocean freight prices.
However, in February 2024, prices remained stable as the supply situation improved and freight rates declined. In March 2024, prices are expected to decrease by 4.7% due to factors such as reduced demand and lower production costs. Overall, the pricing environment for VAE Redispersible Powder in the North America region during Q1 2024 can be described as stable. While there were some fluctuations in prices in the USA, the overall trend was towards stability. The quarter-ending price for VAE Powder Tg Harder General Grade DEL Texas in the USA was recorded at USD 2150/MT.
Europe
In Q1 2024, the European market for VAE Redispersible Powder experienced stable pricing dynamics, with no significant changes recorded in the overall market. The pricing environment was influenced by factors such as improved supply, consistent demand from the construction industry, and challenges such as reduced building permits and high costs. Despite these challenges, there were positive indicators in the market, including a rebound in construction production and a surge in demand for new builds. In Germany, the pricing trend for VAE Redispersible Powder was slightly more volatile compared to the overall market. In January 2024, prices increased by 4% due to higher upstream crude oil prices and supply chain risks. However, in February 2024, prices remained stable with no change recorded. The country witnessed a moderate supply of the product domestically, but there were constraints in the supply of feedstock due to the Red Sea crises. Demand for VAE Redispersible Powder in Germany was moderate to low, with the construction industry facing challenges such as declining building permits and high costs. However, there were positive signs of recovery, including a rebound in construction production and increased demand from the downstream construction industry. Overall, the pricing environment for VAE Redispersible Powder in Q1 2024 can be described as stable. Despite challenges in the construction industry, there were positive indicators of recovery, indicating a potentially optimistic market outlook. The quarter-ending price for VAE Powder Tg Harder (General Grade) FD-Hamburg in Germany was USD 2100/MT.
APAC
The pricing environment for VAE Redispersible Powder in the APAC region during Q1 2024 has been characterized by various factors that influenced market prices. Overall, the market has seen a mix of positive and negative trends. In India, which experienced the maximum price changes, the market has been relatively stable with marginal increases and decreases in prices. Factors such as the upward trajectory of feedstock Vinyl Acetate Ethylene costs, smoother import and export activities, and positive developments in the freight sector have impacted pricing dynamics. However, global freight rates remain elevated, reinforcing the bullish trend in the market. In terms of demand, there has been an improvement, particularly in the construction industry. Sales have surged, driven by marketing efforts aimed at boosting demand. However, the market has also faced challenges such as low trading atmosphere and lacklustre demand due to inflationary pressure. Looking at the overall trends and seasonality, prices in Q1 2024 have shown stability and are expected to remain optimistic in the first month of Q2 2024. The market has been influenced by factors such as increased demand, expensive imports, and the impact of upstream crude oil prices on the petrochemical market. In conclusion, the pricing environment for VAE Redispersible Powder in the APAC region during Q1 2024 has been a mix of positive and negative factors. While there have been challenges and fluctuations in prices, overall stability and optimism are expected in the market. The latest quarter-ending price in India is USD 1789/MT of VAE Powder Tg Harder General Grade Ex- Mumbai.
For the Quarter Ending December 2023
North America
The North American market for VAE Redispersible Powder (RD Powder) faced notable challenges during the fourth quarter of 2023.
A primary contributing factor was an oversupply of the product, leading to a substantial decline in prices. This oversupply was predominantly a consequence of diminished demand from the downstream construction sector, particularly in the United States. The construction industry in the US encountered a downturn characterized by low investor confidence, resulting in reduced construction activities and a corresponding decrease in the consumption of VAE RD Powder. The market woes were further exacerbated by rising mortgage rates, which constricted the pool of potential homebuyers, thereby negatively impacting the demand for the product.
Supply chain disruptions were also a noteworthy issue, driven by a shortage of truck drivers, which led to increased lead delivery times for businesses. Despite these challenges, there were no reported plant shutdowns during the quarter. In terms of pricing, the VAE RD Powder in the USA experienced a significant 6% decrease compared to the preceding quarter, reaching a price of USD 2020/MT DEL Texas. Despite the adverse market conditions, there remains optimism within the industry that potential changes in government policies and the upcoming festive season could act as catalysts, stimulating construction activities and thereby enhancing the demand for VAE RD Powder in the subsequent quarters.
Europe
In the fourth quarter of 2023, the European market for VAE Redispersible Powder encountered a series of challenges. The most prominent factors impacting the market included stagnant demand from the downstream construction sector, an oversupply of the product, and declining prices of the key feedstock, Vinyl Acetate Monomer (VAM). The construction industry, especially the residential sector, performed below expectations, resulting in diminished demand for VAE Powder. This lackluster demand, coupled with an oversupplied market, contributed to a notable depreciation in prices. Furthermore, the declining prices of VAM added to the overall downward trend. Notably, Germany experienced significant price fluctuations, with a substantial -31% decrease compared to the same quarter of the previous year and a -6% decrease compared to the preceding quarter. Despite these challenges, there were no reported plant shutdowns in the region during this period. As the quarter concluded, the price of VAE Powder FD-Hamburg in Germany stood at USD 1990/MT. In summary, the market grappled with weak demand and oversupply, resulting in a discernible decline in prices across the European VAE Redispersible Powder sector.
APAC
The fourth quarter of 2023 (October to December) witnessed several influential factors shaping the pricing landscape of VAE Redispersible Powder in the Asia-Pacific (APAC) region. The market experienced stable supplies of the product, largely attributable to consistent imports from China, maintaining a well-balanced supply-demand scenario and averting significant price fluctuations. The downstream construction industry exhibited healthy demand, fuelled by positive business sentiments and heightened renovation activities during the festive season. However, this demand proved insufficient to absorb the existing inventories, leading to a slight depreciation in prices. Moreover, the stability in prices of the feedstock Vinyl Acetate Monomer (VAM) played a crucial role in maintaining overall production costs. In India, a key player with notable price changes during the quarter, VAE Redispersible Powder prices depreciated by 3%. This decline was primarily attributed to the availability of cost-effective imports from China, resulting in ample supplies saturating the market. Despite positive performances in the construction and cement industries, the current consumption rate fell short of reducing the existing inventories, exerting additional downward pressure on prices. Notably, the quarter saw no reported plant shutdowns, contributing to a stable production environment.
