Chemical Industry news of NWE AA/VAM
– AA price stability persists
– VAM Chemical Industry set to tighten
AA: European acetic acid Chemical Industry fundamentals were stable again in the week to Friday sources said. AA was assessed at Eur700/mt FD NWE, unchanged week on week. A source said the material was being imported into Europe. In Asia, ample supply weighed, with some Chinese sellers reported to be offering cargoes to Southeast Asia and India, Chemical Industry sources said. Trading activity remained subdued, with buyers not keen to procure cargoes amid sufficient stocks. In the US, AA pricing softened on the week, with export and domestic product assessed at $555/mt. In producer news, Celanese announced it planned to increase methanol Chemical Industry production at its Clear Lake unit in Texas to 1.7 million mt/year, the company said. While no specific dates were given on the timeline of the project, it said the expansion is due to be carried out “as soon as operationally feasible and pending customary regulatory and permitting approvals.”
VAM Chemical Industry: The European vinyl acetate monomer market was assessed down Eur10/mt at Eur890/mt Friday with the Chemical Industry described as quiet. “Demand is not as fast as we hoped. I spoke to end users using VAM and they are far behind on orders,” a distributor said of the slow start following Easter. Despite the slow week, sources predicted tightness as the month draws to a close. “If demand picks up there will be some degree of tightness,” the distributor said. Supply was said to be tightening in other regions as a result of maintenance works. VAM supply was tighter amid turnarounds at Sinopec, Celanese, and Chang Chun plants, with Chemical Industry participants expecting prices to rise further in the coming weeks. “Supply is getting tighter because of scheduled maintenance in the US and the Far East. [However] there is no issue finding VAM in Europe,” the distributor said.
S&P Global assessed acetic acid spot truck prices at Eur700/mt FD NWE Friday stable on the week. Product was heard pegged at around this level by Chemical Industry participants. Acetic acid FOB NWE was assessed at $700/mt, also stable and in line with FD price. Vinyl acetate monomer spot trucks were assessed down Eur10/mt on the week at Eur890/mt FD NWE, at the top end of a source indication at Eur860-890/mt. FOB NWE VAM Chemical Industry was assessed down $11/mt at $964/mt, in line with FD price movement.