The constant delay in the shipments from Singapore and Taiwan since April has led to shortage of the chemical. The manufacturers are unable to fulfill their commitments as there is constant shortage of feedstock Acetic Acid. Now the major suppliers are first catering to their domestic market in Asian subcontinent. So many believe to import it from American market.
To add to their woes, one of the major manufacturers of VAM, DOW chemical declared force majeure on its unit. The reason behind this has been the external factors related to supply of material and production issues. The force majeure is likely to last for around two months. The market experts believe that this force majeure is due to BP’s force majeure at a US acetic acid plant in Texas in late April. This has led to acute supply and huge demand in American market.
The force majeure in major companies has pushed on the domestic prices in the upcoming months with a tight acetic acid market providing further support.
VAM prices in Asia-Pacific will reach at their highest since 2014 on reduced output and plant turnarounds. So to conclude the prices for VAM will soar up further as there is significant hike in the prices of Acetic Acid.
