European vinyl acetate monomer prices are expected to strengthen going into December, despite stable Asian pricing and the potential arrival of Asian cargoes, as a force majeure sent buyers scrambling to short cover, European sources said this week.
Spot truck parcels in Europe were offered as high as Eur1,020/mt FD NWE this week, with product traded at Eur1,000/mt FD NWE.
Some suppliers who did not have any spot volumes available were proposing a Eur75/mt increase in freely negotiated contracts.
Platts assessed VAM truck prices at Eur1,005/mt FD NWE Thursday, up Eur10/mt week on week.
Sources said they were shorter, while buyers recognized that the market had changed in the past few weeks following a force majeure declaration by LyondellBasell at its La Porte, Texas, plant in the US, which also exports material to Europe.
A LyondellBasell company source confirmed Friday that European VAM consumers were on 50% allocation.
A European trader who was looking to buy said Thursday that European suppliers “are not talking about length” anymore.
Although a sales allocation of 100% of the average purchases over the last nine months had been put in place, European sources said an allocation of less than that was having an impact.
“We don’t have too much material available. There are some [import] vessel delays and so we get some requests,” a supplier said. “The 50% allocation is having an impact on the European market. We are trying hard to supply our cuts but not enough to fill the gap.”
US spot prices were assessed $10 lower week on week at $945-$955/mt FOB USG Thursday as pricing was talked below last week’s level of $960/mt FOB USG, compared with European prices of $1,046.00-$1,050/mt FOB NWE.
