Published on July 19, 2014

Vinyl Acetate Monomer domestic prices have been fluctuating since last month for Mumbai and Kandla port. On 15th Jun 2014 domestic prices were Rs.103-104/kg for Kandla and Mumbai port which has further decreased to Rs100-101/kg today due to lack of demand in the market. Prices tend to show a mixed trend throughout this month. Meanwhile prices have touched the level of Rs.98/kg on 27th Jun. Market players believe that still the current position of the chemical is more than what is being anticipated and is thus affecting the demand from end user.

In the month of June international prices remained steady due to slowdown in demand and enough stock availability at the ports. Last week with 3% duty, CIF India prices were assessed at the level of USD 1540-1560/MT, which shows no changes in last four weeks and for full duty material, prices have been quoted at the level of USD 1400-1420/MT by few traders and brokers, which shows hike of 20/MT compared to last week.

Market players and industry sources said that current level of VAM prices is still too high and this uncertainty will last in near future. Moreover last week feedstock Ethylene prices have also increased and also prices for Acetic Acid are on high level which has kept VAM prices on hike. Sources from user industry said that they are purchasing material on need basis and do not have any plans for building inventory due to high prices.