Major price correction for VAM in India uplifts demand – 6 May 2014

In the past few months the price of VAM in India and across the globe have skyrocketed on account of international turnarounds. In the last review, the website cited that exorbitantly high prices for the chemical in the Indian market context have driven down the demand since the past few months. However, things seem to be looking up for the chemical in the Indian market.

Currently, the bulk price for VAM have dwindled to levels of Rs. 99.5 per kg (exclusive of all taxes) Ex- Mumbai from highs of Rs. 112 per kg (exclusive of all taxes) Ex- Kandla in the first week of April, 2014.

The website gathers from various sources that the booking price for VAM declined from $1,700-1,800 per metric tonne to $ 1,300- 1,350 per metric tonne, which has drastically impacted the bulk price for the chemical in the Indian market.

A prominent trader added that the high booking prices and dull demand at exorbitantly high Indian bulk prices dissuaded importers from importing huge shipment of the chemical into the country and most importers refrained from bulk purchases. In addition to this another trader adds that as summer season is approaching, most traders in the market are willing to clear their existing stocks at lower margin, this could also explain the decline in bulk prices. 

However, traders are expecting a turnaround in the bulk price trend for the chemical in the future with expectations of the prices declining to levels of Rs. 85 per kg, which will uplift the demand in full swing in the Indian market context.

Currently, the demand for VAM is gaining momentum in India and traders have ample stock with them to suffice the demand.