SunSirs: China EVA Market has Experienced a Decline Followed by Stability since July

https://www.chemnet.com   Aug 01,2024 SunSirs

The domestic EVA market experienced a significant decline in the early stages of July, but remained stable in the later stages. According to the Commodity Market Analysis System of SunSirs, as of July 31st, the benchmark price of EVA in China was 10,083 RMB/ton, a decrease of 10.24% from 11,233 RMB/ton on July 1st.

The domestic EVA market has recently experienced a decline followed by stability. On the one hand, as of the end of July, the dynamic adjustment of load in petrochemical plants has led to a significant decrease in the operating rate of domestic EVA units, which is around 63%, compared to 85% at the end of June. Under supply pressure in the first half of the month, EVA prices fell sharply; The market supply pressure has eased in the second half of the month, and the overall ex factory price of EVA remained stable in late July. On the other hand, the price of raw material ethylene increased in July, which provided some cost support for EVA. As of July 31st, the domestic price of ethylene in Sinopec East China was 7,650 RMB/ton, a significant increase from 7,350 RMB/ton at the beginning of the month.

On the demand side, in early July, EVA terminal enterprises had slow inventory digestion and weak stocking conditions, with a focus on rigid demand procurement. Traditional downstream industries such as foam shoe materials and cables and wires have entered the off-season market. The consumption level of photovoltaic materials has limited changes, and the increase in stocking is not significant. The actual order delivery is cautious. Since late July, there has been a slight increase in demand, but it is still mainly weak

Overall, EVA will continue to be supported by the prices of raw materials ethylene and vinyl acetate in the near future, coupled with low industry production, which will provide some support for the EVA market. However, the short-term support on the demand side of EVA is still relatively weak. It is expected that the EVA market will maintain a weak consolidation trend in the later stage.

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