Dwindling Demand and Economic Concerns’ Impact on Vinyl Acetate Monomer Prices in Europe

The Vinyl Acetate Monomer market in Europe remains weak, primarily due to continuous low demand from the paints and coatings industry. The construction and building sectors are also experiencing declining demand, primarily attributed to a weakened economic outlook. This situation is further exacerbated by high and sustained interest rates, which are currently at 4.25%, thus diminishing the purchasing power of consumers in downstream industries. On a global scale, Vinyl Acetate Monomer utilization has declined to the mid-80s level, as indicated by Lori Ryerkerk, the CEO of Celanese, a prominent player in the global Vinyl Acetate Monomer market. Furthermore, Celanese has temporarily halted operations at its VAM facility in Frankfurt, Germany, citing it as the costliest among its five Vinyl Acetate Monomer units. The company has announced that the plant will remain inactive until at least the end of the third quarter, with plans to resume operations once global demand recovers to a satisfactory level, as detailed in the company's prepared statements.

In the US market, Vinyl Acetate Monomer prices began to decline at the onset of Q3, primarily driven by the decreasing prices of its feedstock, Acetic Acid. Additionally, there was subdued demand from downstream industries such as Polyvinyl Alcohol (PVOH), resulting in weakened demand pressure from these sectors. However, Ryerkerk, the CEO of Celanese, mentioned, "The American market is currently witnessing a renewed interest in Vinyl Acetate Monomer, notably within the packaging industry. The packaging sector continues to be robust and remains a crucial end-market for us in the Americas. In China, we are noticing renewed activity in some industrial uses of Vinyl Acetate Monomer. The cost of Vinyl Acetate Monomer has been increasing due to the scarcity of Feedstock Acetic Acid as major plants continue to hold their position in the market. Nevertheless, the construction and building sectors have not seen significant recovery yet, but there is potential for growth in the latter half of the year, particularly in light of the announced stimulus measures."

As per the ChemAnalyst database, 'the prices of Vinyl Acetate Monomer in the European market are expected to increase in the upcoming months. This market development can be primarily instigated through firm demand from the downstream industry, like PVOH, and demand from Ethylene Vinyl Acetate. Additionally, In the US market, the price of Vinyl Acetate Monomer is expected to increase on the backdrop of improved economic conditions, which will likely lead to an increase in demand from downstream industries like PVOH, which serves as an intermediary in the production of laminated glass and packaging films as the economic condition are anticipated to increase which will likely create positive market sentiments are demand from the downstream industries are expected to increase which further led to rising prices of Vinyl Acetate Monomer.'