Information on VAM Shortages Caused by the Gulf Weather & Force Majeure Updates
Dear Valued Customer,
As you may know, many factors are currently affecting the industrial adhesives making process. We’re always here for you to break down all this information and to give you all the details on these important updates.
Information on Force Majeure: As you may be aware, the unprecedented weather and utility supply situation in Texas has created Force Majeure conditions and/or shutdowns for suppliers of key materials we use. All adhesives’ distributors have declared Force Majeure on vinyl-acetate-based emulsion (PVAc and VAE) adhesives due to the unforeseeable events and circumstances beyond reasonable control. Vinyl Acetate Monomer (VAM) is the backbone for almost all water-based adhesives and the majority of supply in North America and globally comes from the Gulf Coast region, specifically the Houston Texas area.
Currently, the duration and magnitude of the impact are unclear. All major industrial adhesive manufacturers have continued to search for alternative suppliers of raw materials. As of today, it looks like the supply will be very tight for the next 8 weeks, especially the next 2-4 weeks. This tightness in the supply chain affects ALL water-based adhesive manufactures. Manufacturers are working around the clock to determine the best path forward for all of our customers. The products that are not affected under Force Majeure, are Hotmelts, PUR Hotmelts, and Corrugating Additives. Your AJ Sales Team will continue to keep you updated as we receive information. As always, if you have any questions please don’t hesitate to contact your AJ Adhesives Salesman.
For More Information you can read more at these links:
- MAY RAW MATERIALS UPDATE (NEW): Raw Material Update Letter May 7th
- MARCH MARKET UPDATE: AJ Adhesives, Inc. Market Update March 2021
- TODAY’S PETROCHEMICAL UPDATE: MEGLOBAL RESTARTS TEXAS MEG UNIT; TPC EXPECTS LONGER RESTART TIMELINE
- YET ANOTHER GULF UPDATE: POST-FREEZE PETROCHEMICAL RESTART EFFORTS CONTINUE ON US GULF COAST
- GREAT SUMMARY OF WHERE WE ARE–IT’S GOING TO BE A ROUGH FEW WEEKS: U.S. GULF COAST STORM OUTAGES RISE, SEND RIPPLES ROUND GLOBAL MARKETS; AREA PLANT STATUS LIST UPDATE INCLUDED
- ASC Issues Statement on the Disruption of Adhesive Intermediates, Calls for Recovery Assistance
- FACTBOX: More Force Majeures, Shurdowns Emerge from US Gulf Coast Petrochemical Producers
- (Video Link) Coast Guard Flyover Record Shipping Jam • Port of Los Angeles – Long Beach
- HB Fuller Official Letter In Response to Force Majeure: HB Fuller Customer Letter Response to RM Supplier Force Majeure
- RS Industrial Offical Letter In Response to Force Majeure: RS Industrial Letter
Raw Material Cost Escalation: Due to the above-mentioned shortages, delays & 2021 logistical cost increases all adhesive manufacturers are announcing price increases now for the Spring of 2021. Our team always does everything we can to provide you with the best service, products & shipping. You can expect your personalized new price information in the coming weeks and our new prices due to industry demand will begin April 19th.
If you have any questions please don’t hesitate to reach out to your AJ Sales Rep. We appreciate your understanding & support during this difficult time.
- Henkel Offical Letter of Price Increase for 2021: Henkel APP Price Increase Letter 3-4-21
- HB Fuller Official Letter of Price Increase for 2021: HB Fuller Price Increase 2021
- Rextac Official Letter of Price Increase for 2021: Rextac March 2021 Price Increase
- Franklin Adhesives Official Letter of Price Increase for 2021: Franklin Final Letter to End Users for Price Increase 2021