February EVA Market Conditions Steadily Organized in China

February 27th, News

In February, the EVA market in China remained largely stable. According to the commodity price analysis system, as of February 27th, the benchmark price of EVA in China was 10,150 CNY per ton, unchanged from the beginning of the month. Downstream factories restocked raw materials before the holiday, providing some support for EVA demand; EVA production facilities in China operated at high capacity, leading to a relaxed supply situation; the price of vinyl acetate, a raw material, increased slightly, continuing to provide cost support for EVA.

In February, the EVA market in China still faced supply pressure. During the period, the prices of raw materials such as ethylene and vinyl acetate slightly increased, providing support to the cost of EVA. As of February 26, the price of ethylene from Sinopec in East China was 5850 CNY/ton, an increase of 1.74% from 5750 CNY/ton at the beginning of the month; as of February 26, the market price of vinyl acetate in East China was 5950 CNY/ton, an increase of 0.85% from 5900 CNY/ton at the beginning of the month.

In the early part of February, downstream rigid demand provided support, but the support was slightly weaker after the holiday. Before the holiday, the downstream foam industry mainly had small orders for rigid demand, and transactions for general-purpose EVA materials were mainly small orders; after the holiday, the resumption of work in the downstream foam industry was slow, with light transactions for general-purpose materials, and prices were stable with some adjustments. The start-up of the downstream photovoltaic industry also increased slowly, with inquiries mainly for small orders, and the market support for photovoltaic materials remained stable and relatively strong.

For the future market forecast, overall, the EVAcost support is expected to continue. However, after the holiday, the demand recovery in the downstream photovoltaic and foam industries in China is slow, and the EVA supply remains high. The overall EVA fundamentals in China are stable but slightly weak. It is comprehensively expected that the EVA spot market in China will mainly show a weak consolidation before the holiday.