Recently (8.20-8.25), the domestic EVA market has seen a narrow consolidation. According to the Commodity Market Analysis System of Shengyi Society, as of August 25th, the benchmark price of EVA in China was 10900 yuan/ton, unchanged from the previous period. On the one hand, the supply and demand of EVA have improved, but on the other hand, downstream consumers still have resistance to high priced goods, resulting in a narrow consolidation of the EVA market in the short term.
Recently (8.20-8.25), EVA production has dropped to over 7.7%, and Tianli New High School’s EVA equipment has been shut down for maintenance, easing the supply pressure in the EVA market. During the cycle, the price of raw material ethylene increased while the price of vinyl acetate decreased, providing cost support for EVA. As of August 25th, the domestic price of ethylene in Sinopec East China was 7050 yuan/ton, an increase of 2.17% from 6900 yuan/ton on August 20th; The price of vinyl acetate in the East China market is 5275 yuan/ton, a decrease of 0.94% from 5325 at the beginning of the month.
On the demand side, there has been an increase in short-term demand support for photovoltaics, while the foam side maintains a strong demand follow-up. However, downstream demand for high priced goods still remains resistant. The trading side holds goods cautiously and operates with the market, and the market is temporarily stable and organized.
Market forecast: Overall, raw material prices have fluctuated, and the pressure on the supply side of EVA production has eased. The downstream photovoltaic and foam industries are mainly supported by demand. With the arrival of the traditional peak season, it is expected that the EVA spot market will tentatively rise in the later period.