August 18th, news:
In August, the Chinese EVA market saw a narrow consolidation, with a clear divergence between photovoltaic grade and general materials, and overall lacked the momentum for a unilateral price increase or decrease. At the beginning of the month, supported by some plant maintenance and low inventory at petrochemical plants, EVA prices remained high; during mid-month, affected by the traditional off-season, transactions were weaker, and prices slightly decreased. According to data, as of August 18th, the benchmark price of EVA was 10,333 CNY/ton, a decrease of 0.48% from 10,383 CNY/ton at the beginning of the month.
Supply side, in August, the operating rate of China's EVA industry remained in the range of 64-70%, with some plants reducing loads due to maintenance; producers increased the production shift towards photovoltaic materials, with photovoltaic-grade output increasing by 8-10% month-on-month, while the output of general-purpose materials was passively reduced. A 300,000-ton EVA plant overseas resumed production in mid-August, and imported supplies gradually arrived, supplementing the supply of high-end materials in China. The inventory within petrochemical plants remained low; social inventory saw a slight increase, mainly concentrated in general-purpose material grades, which suppressed the rebound space for the prices of general-purpose materials.
Cost-wise, Brent crude oil has been fluctuating within a range, and naphtha has driven the spot price of ethylene in China to maintain at 7900-8100 CNY/ton; the mainstream price of vinyl acetate in East China is 6500-6700 CNY/ton, which does not significantly impact EVA. The full cost of oil-based EVA is approximately 8700-9100 CNY/ton, with cost support present, but downward transmission is not smooth, leading to divergent profitability among enterprises.
On the demand side, there’s been a polarized trend: in August, photovoltaic encapsulant film companies increased their production output by 6-7% month-on-month compared to July. Long-term contract orders remain stable, and rigid demand continues to support EVA grades for photovoltaic applications. Meanwhile, traditional downstream sectors such as footwear materials and packaging are in the off-season, with sluggish end-user activity. As a result, end-users are only maintaining procurement at the level of immediate needs, and price-cutting sales have become widespread, weighing down the overall market for general-purpose materials.
Looking ahead, the short-term EVA market is expected to continue its weak and volatile trend. Photovoltaic materials will maintain stable prices supported by the production of encapsulant films, but there is insufficient momentum for a significant price increase; general-purpose materials still face slight downward pressure due to the off-season. As maintenance units resume operation and imported supplies continue to arrive, the supply will further increase, limiting the room for price hikes.
