Vinyl Acetate Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Vinyl Acetate Monomer (VAM) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

For the Second Quarter of 2022

Asia

The price trends for vinyl acetate monomer (VAM) kept strong during the said quarter. Despite the falling feedstock acetic acid prices, the prices of VAM surged, given the effective demand fundamentals. The demand from the downstream textile, paints and adhesives sector caused the VAM prices to incline and average 2300-2350 USD/MT. The prices in the Indian domestic market were lower compared to its Chinese counterpart owing to the reduced offtakes.

Europe

Given the economic backlash unleashed in the European region, prices of all the commodities soared drastically, giving rise to runaway inflation. The high feedstock methanol and acetic acid prices, along with lowered industrial production rates and poor logistics, contributed towards the upstream cost pressure. Equal support was provided to these inflated prices from the downstream sectors as the high demand helped offset the supply constraints, keeping the prices high, averaging 2750 USD/MT.

North America

The price of vinyl acetate monomer averaged 2600-2750 USD/MT in the US domestic market. The high prices were the direct consequence of robust downstream demand, efficient offtakes, and high feedstock prices.

Analyst Insight

According to Procurement Resource, the VAM prices are expected to register a downward pattern in the upcoming months. After reaching the current peaks, there is only a little room left for a marginal incline. Besides, given the grim economic scenario, the speculations of a global recession are causing baulking of buyers from their respective markets.

For the First Quarter of 2022

Asia

In the first half of this quarter, vinyl acetate prices in China decreased, to 2291 USD/MT FOB Dalian in January 2022. Ethylene and acetic acid feedstock prices were also cut as a result of oversupply and declining demand in China's regional market. This tendency was facilitated by depressed market attitudes and ample product supply.

Acetic acid feedstock prices collapsed, exacerbated by oversupply. However, during the second half of the quarter, vinyl acetate prices jumped to 2192 USD/MT FOB Dalian, aided by a bullish upstream crude and naphtha market.

By pinching profits and robust demand, major adhesive makers have also saturated the market with their goods. Costs in China increased by more than 11.8 percent in the third quarter compared to the previous quarter. Prices in India were evaluated at 2623 USD/MT Ex-Hazira toward the conclusion of the quarter.

Europe

Vinyl acetate prices were high in this quarter, owing to strong market demand and limited product supply. Imports from the United States and other European regions continued to grow as freight and transportation costs continued to rise. Natural gas prices increased as a result of the Russia-Ukraine war, which had an effect on regional market pricing.

Vinyl Acetate Monomer (VAM) was priced at 2365 USD/MT FD Hamburg in Germany in January 2022. The major VAM adhesive manufacturers increased their product pricing in their home markets. Traders began acquiring the goods in quantity, upsetting the supply/demand balance and thereby altering the price trend.

North America

In Q1 2022, vinyl acetate prices fell in the first part of the quarter due to subdued market sentiments and adequate product availability. Exports to Europe and Canada decreased as a result of the sluggish market and hoarding of inventory.

However, prices increased significantly during the second part of the quarter, reaching 2680 USD/MT FOB New York. Spot prices for the feedstock ethylene, on the other hand, increased in the absence of adequate supply due to the maximum ethane utilization in wafers.Vinyl acetate prices decreased by 6.1 percent in the most recent quarter compared to the previous quarter.

For the Fourth Quarter of 2021

Asia

In Q4, the Asian market remained in a state of hyperinflation. In China, vinyl acetate prices reached a high of 2740 USD/MT FOB Dalian as a result of unprecedented robust trading following the holidays, which boosted market sentiments and resulted in port congestion and limited freight vessel availability.

However, with constant supply and minor imports from Taiwan, Singapore, and Saudi Arabia, a little price reduction was noted in November. VAM prices reached 2345 USD/MT Ex-Hazira on 12th November, in accordance with the upswing in demand for construction materials.

Europe

In Q4, when feedstock Benzene and Ethylene prices surged, VAM prices soared to new highs. The tight balance was also caused by a large decline in long-haul exports from Europe to the Asian market, lower cracker operations in the fourth quarter due to low profitability and logistical constraints.

Following the energy restriction, VAM prices increased as a result of the shutdown of several facilities as a result of government involvement. The polymer, adhesives, and coatings industries all experienced significant downstream demand for the raw ingredient VAM.

North America

Vinyl acetate prices in North America were reported to be on the higher end in Q4 2021 when compared to the previous quarter. For most of the quarter, supply of feedstock acidic acid and ethylene was constrained, which explains why Vinyl Acetate stayed largely in an upward trend.

The second part of December had a brief period of stability. In October, prices increased owing to a supply constraint, which kept demand high; however, over the next two months, the big players supplied adequate stock, and prices declined relatively. Downstream, the construction, paint, and coatings industries also faced significant price increases and a supply constraint of acetic acid, which harmed their operations.

For First, Second and Third Quarters of 2021

Asia

Supplies were scarce in the first part of Q1 2021, as numerous Chinese factories remained closed for repair. However, as several factories began operations at the quarter's end, the situation improved. Vinyl acetate prices in India averaged over 1215 USD/MT during the quarter, owing to the market's significant reaction to the worldwide supply deficit.

During the first half of the second quarter, the Asia Pacific region's supply was significantly hit, with certain plants shut down in Taiwan, Japan, and South Korea. In June, the price FOB Shanghai was estimated to be 1929 USD/MT.

In Q3, the Asian market saw a surge in VAM pricing, owing to tight supply of the feedstock Acetic Acid and robust demand from downstream industries. Throughout the quarter, the demand-supply imbalance expanded significantly. Monthly average prices for ex-Hazira VAM were 2097.59 USD/MT in India, indicating an increase of around 246.13 USD/MT from July.

Europe

Around the quarter, supplies were scarce due to scheduled maintenance shutdowns at several plants throughout the area. Throughout the quarter, the market remained volatile due to the second COVID wave, but the European region's large immunization effort-maintained market optimism.

Supplies in the European area increased over the previous quarter, mainly to the ease with which shipments from the United States were resumed following the resumption of industrial infrastructure in the US Gulf Coast (USGC) region. Whereas Asian goods were delayed beginning in April as a result of the Suez Canal blockade.

Supplies in Europe were hampered during the third quarter, owing to delayed imports induced by the August storm Ida on the Gulf Coast of the United States. In comparison to the previous quarter, overall demand was boosted by the downstream industries. In September, the average monthly price of FD Hamburg VAM was USD 2246/MT.

North America

The region's market was constrained in Q1 2021, as some plants went offline for about two weeks as a result of sub-freezing conditions in Texas. Exports of US decreased significantly throughout the quarter, with prices settling at 1350 USD/MT FOB Texas in the final week of March.

The effect from the US freeze harmed the North American market badly in Q2, as market supply remained slow owing to a series of facility closures. Vinyl acetate prices remained optimistic throughout the quarter, with FOB Texas offers ending at 2390 USD/MT in June, about 30% higher than March 2021 estimates.

The third quarter saw a significant increase in the price of the chemical. LyondellBasell's La Porte factory in Texas was shut down in July following a chemical leak disaster. The region’s market suffered additional blow as a result of the closure. As a result of this occurrence, manufacturers were unable to keep up with demand for both the local and international markets, resulting in a quarter-long increase in prices. September FOB Texas average monthly prices were 2680 USD/MT.

For the Year 2020

Asia

Throughout the third quarter of 2020, the frequency of plant turnarounds from Taiwan and South Korea strained Southeast Asia's total availability of shipments. Thus, vinyl acetate prices in Southeast Asia in Q3 2020 averaged roughly 807 USD/MT, owing to the product's robust demand fundamentals and scarcity.

Despite the limited supply, major manufacturers such as Celanese and Dairen Chemicals continued to run their operations at lower rates despite widespread concern of the second Coronavirus epidemic in numerous sections of the region. In Northeast Asia, downstream demand for derivatives such as ethyl vinyl acetate (EVA) and poly vinyl acetate (PVA) saw a little revival as governments recommenced commercial activity in an attempt to salvage the flailing economy.

Europe

The European market experienced significant supply constraints, largely as a result of Celanese's plant turnaround in Germany, followed by a few more brief shutdowns around the area.

With the coming of the summer season in the nation, the paints and coatings sector's demand fundamentals improved. While supply constraints were resolved by the end of the quarter, the recovery's momentum was stymied by reports of Coronavirus resurgence in several parts of the region.

North America

The fundamentals of the Vinyl Acetate market in North America remained solid, bolstered by high feedstock acetic acid prices and a series of plant outages along the Gulf coast owing to a wave of seasonal storms. Due to the fact that a large portion of the US VAM is utilized to meet worldwide demand, outages and logistical issues hampered trade activity, consequently limiting the region's export earnings.

According to Celanese Corporation, the company saw a 10% quarterly increase in demand from its largest importer China, but the gains were masked by the material's consistent availability due to the native country's high production rates.

Procurement Resource provides latest prices of Vinyl Acetate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.