Costs Decline and Demand Weakens, EVA Market in China Shows a Weak Downward Trend in November

November 28 news

Demand remained weak, and the Chinese EVA market experienced a downward trend in November. According to the commodity price analysis system, as of November 28, the benchmark price for EVA in China stood at 10,400 CNY per ton, a decrease of 4.29% from the beginning-of-month level of 10,866 CNY per ton.

Since November, some EVA plants in China have been shut down for maintenance. The overall operating rate of the EVA industry has slightly decreased from around 92% at the beginning of the month to about 83% by the end of the month. However, the market supply remains ample, and with the expectation of new plants commissioning by the end of the year, the market sentiment is weak.

The prices of ethylene feedstock have declined, while the price of vinyl acetate has risen, providing some cost support for EVA. As of November 27, the Sinopec East China ethylene price stood at 6,200 CNY per ton, down 1.59% from the beginning-of-month level of 6,300 CNY per ton. As of November 27, the East China vinyl acetate market price was 5,500 CNY per ton, up 5.98% from the beginning-of-month level of 5,850 CNY per ton.

In November, the EVA market lacked significant positive support. Downstream orders from the photovoltaic and foam industries were slow to follow up, resulting in sluggish spot market absorption. Meanwhile, with new production capacity on the supply side soon to be commissioned, the supply of EVA is expected to increase. Consequently, manufacturers have continuously lowered their offered prices in November, and the EVA market has been operating weakly.

Looking ahead, considering the overall situation, EVA costs are expected to decline. Coupled with ample supply in the EVA market and weakening demand from downstream photovoltaic and foam industries, we forecast that the spot EVA market will continue its weak and consolidating trend in the near term.