Hamburg (Germany): Vinyl Acetate Monomer (VAM) supply is expected to remain tight in the first half of FYxx as interest rate expectations dampen in European and American markets, while VAM prices rally across major market segments. The upstream VAM market is facing dual price pressures, with major feedstocks experiencing a bullish rise while energy prices continue their bearish trend. Supply challenges have persisted, outpacing demand, as freight challenges persist across the Panama and Suez canals. Despite these obstacles, global VAM markets have performed relatively well compared to other petrochemical markets, owing to resilient consumer demand and product portfolio diversification across major segments.
In American markets, according to the INEOS trading statement, the situation in the VAM and other Acetyls markets is as follows: "US demand remained subdued but with reasonable margins due to low gas prices; however, mild weather conditions delayed sales into the de-icer...
