Market reports from Singapore indicate that Dairen Chemical is preparing to reduce operating rates at its Vinyl Acetate Monomer (VAM) plant. According to industry sources, the facility, located on Jurong Island, is expected to be run at around 80 percent of its production capacity starting from mid-September 2025.
The development has sparked attention within the Asian petrochemical industry, as the precise reason behind the cutback has not been officially confirmed. A market source told that no direct clarification from the company has been obtained, leaving industry participants speculating on whether the decision is linked to feedstock supply, technical adjustments, or market demand considerations.
Dairen Chemical’s VAM plant in Singapore holds a nameplate production capacity of 350,000 metric tons per year, making it a significant player in the regional supply chain for this key intermediate. Vinyl acetate monomer is widely used in applications such as adhesives, paints, coatings, films, and textiles, meaning that even slight adjustments in operating rates can influence availability and pricing trends across downstream markets.
Traders and buyers across Asia are closely monitoring the situation, as a shift to 80 percent run rates could have ripple effects in the regional balance of supply and demand. Given Singapore’s role as a hub for petrochemical exports, any change in output from the Jurong Island facility may hold implications not only for Southeast Asian markets but also for buyers in other regions that rely on VAM imports.
While uncertainty surrounds the reasons behind the move, the adjustment signals that producers continue to calibrate their operations in line with evolving market dynamics. Further clarity is expected as September approaches, with stakeholders watching closely for official communication from Dairen Chemical.
