Prices of VAE RD Powder in the US market plummeted by almost 12% in September 2023 owing to the ease in production costs due to declining costs of feedstock Vinyl Acetate monomer, which also slumped by almost 24%.

Demand from the downstream construction industry was largely minimal, with the prime residential sector performing poorly, as mortgage rates remained at an all-time high. With interest rates being almost 7.5% for a 15-year term basis, existing home sales have also declined by 8.7% in August, the seventh consecutive month, and further depreciations are expected in September. The only demand of VAE RD Powder was concentrated on maintaining existing infrastructure, with civil engineers warning ARTBA (American Road and Transport Builders Association) of structurally deficient bridges and antiquated water infrastructure, which posed significant safety risks.

Demand for VAE Powder from the downstream cement manufacturing sector was reported to be weak as most activities were limited to clearing existing backlogs, consequently leading to a low consumption rate of VAE RD Powder. This low consumption rate in the face of moderate production rates resulted in an oversupplied market of VAE RD across the United States. As key market players in the construction industry across the US continue to file for protection against bankruptcy due to the falling real estate market, which displayed minimal business activities, this had a detrimental impact on the consumption rate of VAE RD Powder as the consumption of cement declined.

Additionally, the current economic situations across the United States were also bleak, with current inflation rates once again rising to 4% in September coupled with increasing production costs, with the Federal Bank being expected to increase interest rates by almost 25 basis points towards December 2023 as the target corridor of inflation rates being in the vicinity of 2% had not been achieved, which further cast a negative outlook for the market of VAE RD Powder. This ultimately led to minimal procurement activity in the construction industry (including VAE RD Powder), with investment confidence being overly pessimistic and postponing construction activities. With confidence in the construction sector being largely low, traders of VAE RD Powder across the US continue to destock existing inventories with accelerated depreciation in product prices.

Overall, prices of VAE RD Powder are expected to fluctuate narrowly as purchasing activities in the sector are being stymied, with most of the construction activities expected to be halted due to the upcoming winter season. This grim outlook is further expected to detrimentally affect prices of VAE RD Powder towards the end of the last quarter of 2023.