Recent EVA Market Trend Weakly in China

November 26th, according to news from China,

Recent (11.20~11.26) EVA market in China has been operating weakly. According to the commodity market analysis system, as of November 26th, the benchmark price of EVA in China was 10,400 CNY/ton, unchanged from the price on the 20th. Downstream photovoltaic and foam demand remained weak; the operating rate of EVA plants in China slightly decreased, but supply pressure still exists; the price of raw material vinyl acetate declined, and the market lacked positive support, leading to a weak consolidation of EVA prices.

Recently (11.20~11.26), EVA operating rates have slightly decreased to around 83%, and the supply pressure in the EVA market still exists. During this period, the price of ethylene, a raw material, remained stable, while the price of vinyl acetate slightly decreased, leading to weaker cost support for EVA. As of November 25, the price of ethylene from Sinopec in East China was 6,200 CNY/ton, unchanged from the price on the 20th; as of November 25, the market price of vinyl acetate in East China was 5,500 CNY/ton, a decrease of 2.65% from 5,650 CNY/ton on the 20th.

Recently (Nov. 20–Nov. 26), the EVA market has lacked significant positive support. Downstream orders from the photovoltaic and foam industries have been slow to follow, resulting in sluggish spot market absorption. Moreover, with new production capacity set to come online soon on the supply side, the supply of EVA is expected to increase. As a result, prices offered by some manufacturers continue to decline, and the EVA market is operating under weak conditions.

For the future market forecast, overall, the support from EVA cost is weakening, and the demand from downstream photovoltaic and foam industries is also declining. In addition, there are plans for new EVA facilities to be commissioned in China. The overall fundamentals of EVA are relatively weak, and it is expected that the spot market for EVA will mainly see a weak consolidation in the later period.