In Q1 2024, Vinyl Acetate Monomer (VAM) prices in major exporting countries such as Singapore, Taiwan, and in the APAC region, as well as Saudi Arabia in the Middle East, showed slight fluctuations, with a price variation of around 2-3% compared to Q4 2023. In contrast, VAM prices in the USA increased by approximately 18-19% during the same period. This bullish price trend was also observed in major importing countries, including India and Mexico. These changes were primarily driven by stable feedstock costs, including acetic acid and ethylene, along with a moderate recovery in demand from industries like adhesives, coatings, and textiles. Additionally, uncertainties in global economic conditions, fluctuating crude oil prices, and ongoing supply chain adjustments from the effects of the pandemic contributed to these price variations. Regional supply-demand dynamics, inventory levels, and trading activities also played a role in these fluctuations.
In Q2 2024, VAM prices in Singapore, Saudi Arabia, South Korea, and other APAC and Middle Eastern exporting countries saw a slight upward trend compared to Q1 2024, a trend also reflected in major importing countries like India and Mexico. This increase was driven by rising freight charges, higher feedstock costs (particularly ethylene and acetic acid), and the impact of higher crude oil prices. Seasonal demand from downstream industries like adhesives, coatings, and polymers further contributed to the price rise, while ongoing global supply chain disruptions, including shipping delays and freight cost increases, tightened supply. In contrast, the U.S. experienced a slight bearish price trend due to weak domestic demand, with reduced consumption from key sectors like construction and automotive, leading to lower VAM prices despite global supply constraints.
In Q3 2024, In Q3 2024, VAM (Vinyl Acetate Monomer) prices across the U.S., APAC, and Middle East regions experienced a bearish trend, primarily driven by falling crude oil prices and weakening demand. In the U.S., reduced consumption from key sectors like construction, automotive, and packaging persisted, leading to lower VAM demand and a decline in prices. Meanwhile, in parts of APAC and the Middle East, demand for downstream products such as adhesives, coatings, and polymers also began to slow after seasonal peaks, further exerting downward pressure on prices. The significant drop in crude oil prices contributed to lower feedstock costs, particularly for ethylene and acetic acid, reducing production costs for Vinyl Acetate Monomer (VAM) manufacturers. As a result, the easing of input prices, coupled with the demand slowdown, led to a stabilization or even decline in VAM prices across these regions. While supply chain disruptions continued to affect logistics, the overall market dynamics of falling crude prices and weaker demand led to a bearish price trend in Q3 2024, contrasting with the previous periods of price increases.
In Q4 2024, VAM prices in the APAC, Middle East, and U.S. regions are expected to stabilize or show a moderate decrease due to several factors. Falling crude oil prices have eased feedstock costs, particularly for ethylene and acetic acid, which had previously driven price hikes. Additionally, demand from key downstream sectors like adhesives, coatings, and polymers is likely to taper off, leading to a reduction in upward price pressure. In the U.S., weakened domestic demand will continue to suppress prices, while in APAC and the Middle East, the end of seasonal demand surges and global supply chain normalization may further contribute to price stabilization or slight declines. As supply and demand dynamics stabilize, moderate price adjustments are anticipated across these regions.
