EVA Market Conditions in China Show Slight Improvement in August

August 29 update

The supply and demand situation slightly improved, and the EVA market in China showed a small recovery in August. According to the commodity price analysis system, as of August 29, the benchmark price of EVA in China was 10,966 CNY/ton, an increase of 0.77% from the beginning of the month when it was 10,883 CNY/ton.

In August, the supply pressure of EVA eased, as some EVA petrochemical plants in China were shut down for maintenance. The overall operating rate of the EVA industry in China decreased from 90% at the beginning of the month to around 77% by the end of the month.

Raw material ethylene prices have risen sharply, while vinyl acetate prices have fallen significantly, providing some cost support for EVA. As of August 29, Sinopec's ethylene price in East China stood at 7,250 CNY per ton, up 6.62% from 6,800 yuan at the end of July. Meanwhile, the East China market price for vinyl acetate was 5,225 CNY per ton, down 8.73% from 5,725 yuan at the end of July.

In August, photovoltaic demand in China increased, and the foam sector maintained its essential demand, driving up market prices. However, downstream sectors still resisted high-priced supplies, limiting the price increase in the EVA market.

For the future market forecast, overall, raw material prices are showing a mixed trend of increases and decreases. With high operating rates for EVA production, the supply-side pressure has eased. The downstream photovoltaic and foam industries are mainly supported by rigid demand. As the traditional peak season approaches, it is comprehensively expected that the spot market for EVA in China may continue to rise on a trial basis.