In this week, the Ex works prices of Vinyl Acetate Monomer were slipped to INR 190140/MT for Hazira and INR 191420/MT Ex-Silvassa with week-on-week declination of 2.62% and 2.60% respectively. December’s Ex works settlement were observed to be INR 193290/MT for Hazira port and INR 194380/MT for Silvassa port.

Pidilite Industrial Limited, which is an Indian adhesive manufacturing company had maintained the operational efficiency and fulfilled the market demand and the prices had peaked out in November followed by their downfall till this week. Market was seen saturated with the product and the prices fell as the traders have enough Vinyl Acetate Monomer and no new stock were utilized which results in increase in inventories. The import from overseas suppliers were also affected as the demand was weak. The ethylene market was bearish amid weak derivative demand in the Indian market. On 10 December, Bureau of Indian Standard (BIS) had decided to levy the quality norms for Vinyl acetate Monomer (VAM) and this order is called as Vinyl Acetate Monomer (Quality control) order. It will come into force from 30 May 2022.

Vinyl Acetate Monomer (VAM) is colourless organic compound which is produced by the reaction of ethylene and acetic acid with oxygen in the presence of palladium catalyst. It is widely used in adhesive and sealants, paint, and coating industry. LyondellBasell Acetyls, LLC is the leading manufacturer and global supplier. Vinyl Acetate Monomer in India is very lucrative market and Pidilite Industrial Limited is the only domestic company which produces it, and the entire Indian demand is met through imports.

According to ChemAnalyst, the price of Vinyl Acetate Monomer will likely drop in the upcoming weeks as the ample supply increases the inventories and affect the domestic market. The trading atmosphere will be weak, and the buyers who already have enough stock will not show interest for the fresh one. With the new guidelines of BIS, the import to India will affect as the traders have to revise their quality as per the defined Indian standards to sell it to consumer of India.