In the U.S., Vinyl Acetate Monomer (VAM) prices maintained a general uptrend throughout the first half of April 2025. The price increase follows Celanese Corporation's announcement that it would be implementing a price increase of USD 100/MT for VAM and its derivatives in the Western Hemisphere effective March 17, 2025, or as contracts allow.  The price increase has also been tied to a reduced supply of VAM and rising production costs in the area.

Concurrently, the U.S. administration recently imposed a 10% global tariff on all imports as well as a specific 25% tariff on certain products under the U.S.-Mexico-Canada Agreement (USMCA) Compliance. The tariffs apply to all products determined to not comply with USMCA. As such, the tariffs add to existing price pressures for imported raw materials and finished goods and have affected the VAM market. Importers from Europe, Canada, and Mexico, which are the biggest customers of VAM imported from the U.S., have evaluated their supply chain procurement plans accordingly based on existing tariffs.

Along with these issues, demand from sectors such as adhesives, paints, and coatings continues to be weak due to seasonal slowdowns and uncertainty in the economy. The construction sector is restricted in VAM procurement for construction applications due to high interest rates and affordability. Non-residential construction activity is ongoing, and while some activity continues, there are indications of stress in construction activity due to rising costs of inputs and labor shortages.

In the U.S., VAM production remains stable, and firm with current demand levels. Acetic acid, a major feedstock for VAM, continues to remain steady but thanks to decreased methanol feedstock costs, the price of VAM has not been affected significantly. Moreover, logistical delays at the ports have slowed the flow of significant trade, which has also indirectly affected VAM consumption.

The implementation of updated U.S. tariffs has brought unpredictability to the market. On April 2, 2025, the White House announced a significant change in trade policy under the International Emergency Economic Powers Act (IEEPA) that included a 10% baseline tariff on almost all imported goods and country-specific tariffs that would be implemented at a higher rate on April 9. Ultimately, the trade policy announced has been a source of criticism, which is not fundamentally clear; the chaotic implementation of the policy, which appears to have contradictory purposes, has likely undermined the intended effect.

According to ChemAnalyst pricing intelligence, the forecast for the VAM market remains cautiously firm in the near term as rising trade duties adjust global procurement strategies. The U.S. imposed duties on imports from Canada, Mexico, and Europe are anticipated to affect the construction sector and packaging businesses in downstream markets, perhaps curbing demand. However, stable domestic production and stable feedstock costs may inhibit price volatility in the near future. Even as the seasonal slowdowns and economic uncertainty caps growth in important sectors like adhesives and coatings, an uptick in infrastructure spending and expectations of a construction boom later in the year may provide some modest demand support.