VAM Prices Climb ₹2/kg, Demand Set to Strengthen Post-Festive Season
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In the domestic market, VAM prices have witnessed a ₹2/kg increase, now quoted at ₹68/kg ex-Kandla for direct consumers on 60-day payment terms. Importers offer slightly higher rates to traders at ₹68.50/kg ex-Kandla under similar 60-day credit conditions.
Chemical Price
- In the domestic market, VAM prices have witnessed a ₹2/kg increase, now quoted at ₹68/kg ex-Kandla for direct consumers on 60-day payment terms. Importers are offering slightly higher rates to traders at ₹68.50/kg ex-Kandla under similar 60-day credit conditions.
- Bulk transactions have been reported in the range of ₹65.50-66.50/kg ex-Kandla on 30-day LC terms, with an additional 30-day storage option, based on MOQ (Minimum Order Quantity). This recent price hike is attributed to the market resuming operations after the Navaratri holidays.
Chemica Demand and Supply
- Throughout September 2024, VAM inventories have grown due to continuous vessel arrivals, while liquidation slowed down, especially during the Navaratri festival period, with activities expected to pick up by mid-October.
- Given that India relies entirely on imports for its VAM supply, the market has reopened, and buyer activity is starting to rise, according to trader insights.
- However, a softening trend in acetic acid feedstock prices across Asia is casting some uncertainty over the VAM market outlook, as highlighted by a bulk consumer.
- Demand from major VAM-consuming sectors, including paints, coatings, adhesives, Polyvinyl Alcohol (PCA), Vinyl Acetate Ethylene (VAE), and ethylene-vinyl alcohol, remained subdued throughout September. Nevertheless, it is anticipated to strengthen after October.
- There are optimistic projections for a rise in demand from the paints, coatings, and adhesives segments in the latter half of October 2024. As a result, the trading sentiment around VAM is likely to improve in the same period.
- India’s current VAM demand stands at approximately 15 kt per month, with expectations for higher consumption from primary end-use industries post-October, supported by seasonal demand factors.
Chemical News
- In the global markets, upstream crude oil benchmark WTI prices dropped by 2.49%, settling at $73.68 per barrel.
- FOB Singapore naphtha prices are pegged at $669/MT, while natural gas prices saw a 1.89% increase, reaching $2.58.
- In related feedstocks, CFR China methanol prices declined by $2, bringing them to $298/MT, and FOB China acetic acid prices are currently at $340/MT.
- Sinopec has reduced its domestic offers for Phenol in east China by CNY 400/MT on 12th October, 2024.
- Far Eastern Union Petrochemical is planning to shut its Monoethylene Glycol (MEG) Unit for maintenance work. The Unit is located in Yangzhou, Jiangsu, China with a production capacity of 500,000 Tons/Year.
Expert Opinion
Domestic VAM prices are expected to remain volatile as buyer activity picks up following the Navaratri holiday season. Additionally, preparations by paint and coating manufacturers for seasonal demand may push VAM prices higher. Buyers should consider exploring inventory management opportunities to navigate potential price fluctuations.
Daily Market Report
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