EVA prices have been decreasing in China amid off-season dynamics and weak feedstock price support
The EVA (ethylene vinyl acetate) market in China is experiencing subdued performance due to weak demand, even though there have been slight increases in ethylene prices. However, a significant decrease in the prices of vinyl acetate has further pushed the prices for EVA down.
In key downstream industries such as foam shoe materials, cables, and wires, demand is traditionally low during their off-season, further weakening support for EVA. Additionally, the photovoltaic sector, which is a major consumer of EVA, has been purchasing cautiously at lower prices, adding pressure on higher-priced EVA sources and resulting in sluggish transaction volumes.
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Production rates of domestic petrochemical EVA units have fallen to about 6.3%, intensifying the supply pressure despite the overall weak demand. This downturn in production is compounded by a lack of new orders from product manufacturers, leading to decreased production rates and slow demand release for new materials. It is expected that EVA spot prices will remain low and stable in the short term, marked by a slow pace of market transactions due to the ongoing supply and demand imbalance.
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