There has been significant hike in VAM prices in Asian market. One of the leading manufacturers of VAM, Celanese has increased its Ex China values by USD 100/MTS this week. The Reason specified for this hike is high cost of Acetic Acid and Ethylene which are its feedstocks.
On other hand VAM is also imported from Thailand, the markets are closed due to new year festival over there. Supply will start from there next week.
End users and traders do believe that this hike is unbearable for Inida buyers because many consumers will restrict their consumption for May as slowdown in demand is expected in the month of June and July due to monsoon showers. Moreover the feedstock values are not so high as specified by the company so its is difficult to digest these values.
