Downstream Replenishment: EVA Market Prices Have Slightly Risen Recently

January 27th, News

Recently (1.1~1.27), the EVA market in China has shown a slight increase. According to the commodity price analysis system, as of January 27, the benchmark price of EVA in China was 10,150 CNY/ton, up 3.92% from 9,766 CNY/ton at the beginning of the month. Downstream factories are restocking raw materials before the holiday, providing some support for EVA demand; EVA production facilities in China are operating at high levels, leading to a relaxed supply situation; the price of vinyl acetate, a raw material, has slightly increased, continuing to provide cost support for EVA.

Recently (1.1~1.27), EVA production has been operating at a high level of around 90%, and the supply pressure in the EVA market still exists. During this period, the price of ethylene, a raw material, slightly decreased, while the price of vinyl acetate slightly increased, providing some support to the cost of EVA. As of January 27, the price of ethylene from Sinopec in East China was 5,750 CNY/ton, down 0.81% from 6,150 CNY/ton at the beginning of the month; as of January 27, the market price of vinyl acetate in East China was 5,925 CNY/ton, up 5.45% from 5,875 CNY/ton at the beginning of the month.

Recently (January 1st to January 27th), the pre-holiday restocking demand from the downstream photovoltaic and foam industries in China stimulated a smooth flow of EVA shipments. As the end of the month approached, the restocking by downstream buyers gradually came to an end, with market inquiries mainly focusing on a small amount of essential needs. The demand for EVA has returned to a weak state. At the end of the month, the EVA market showed a narrow range of adjustments.

For the future market forecast, overall, the support from EVA cost is expected to continue. However, as the Chinese New Year approaches, the demand from downstream photovoltaic and foam industries is weakening. Additionally, with high operating rates of EVA facilities, the overall EVA fundamentals are stable but slightly weak. It is comprehensively expected that before the holiday, the EVA spot market will mainly show a weak consolidation.