Vinyl Acetate Monomer (VAM) is an organic colorless compound which is made from the reaction of ethylene and acetic acid with oxygen in the presence of a palladium catalyst. It is an important chemical building material which is used in a variety of consumer and industrial products. VAM is a key ingredient for producing intermediates, resins and emulsion polymers which are used in wires, coatings, adhesives and paints.
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Imports are expected to play a significant role in vinyl acetate monomer (VAM) market in Europe following the closingof region’s significant production capacity of the chemical. Moreover, investments in solar power projects, emerging economies and the booming shale gas production are expected to drive the demand forvinyl acetate monomer. The growing popularity of shale gas over the recent years, primarily in the U.S. has had a positive effect on the domestic production of VAM.
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Increasing use of shale gas is one of the major factors driving the demand for vinyl acetate monomer. The market has been witnessing positive growth, due to the continued development of unconventional sources of gas. Resources such as shale gas require significant amount of horizontal drilling to cover a large surface area, increasing the rate of production of gas which in turn have boosted the demand for VAM. However, volatility in the feedstock prices of VAM is expected to hamper the growth of the market.
North America was the largest consumer of vinyl acetate monomer, followed by Asia Pacific, where emerging economies such as China dominated the market. Furthermore, growing demand in Asia Pacific for EVA based photovoltaic application is expected to provide new opportunities for the growth of the vinyl acetate monomer market.
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Dow Chemical Company, Celanese Corporation (Hoechst Celanese), China Petrochemical Corporation, Chang Chun Group, LyondellBasell are some of the key manufacturers of vinyl acetate monomers dominating the market.
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