Belgium EVOH Prices Set to Decline in November 2024

European Ethyl Vinyl Alcohol Copolymer (EVOH) Prices in Belgium are expected to decline in November 2024 followed by unchanged market dynamics with a bearish trading atmosphere. The prices are set to further decline at the end of the fourth quarter.

The European EVOH market is poised for a period of price weakness, with November 2024 expected to mark the onset of a downward trend driven by subdued demand from the downstream packaging sector and ample supply due to decreasing feedstock Ethyl Vinyl Acetate costs. Demand for EVOH has been sluggish throughout the fourth quarter of 2024, primarily due to economic uncertainties that have dampened manufacturing activity. This is particularly evident in industries reliant on packaging and food preservation, where EVOH is a critical component. Despite this, demand has remained at a sustained level, though at a lower intensity. The relatively small number of players in the European EVOH market has exacerbated the impact of reduced demand. With fewer buyers in the market, sellers are finding it increasingly difficult to command premium prices.

Moreover, several EVOH producers in Europe, many of whom operate swing plants, have adjusted their production rates to align with the current market conditions. This is expected to result in a surplus of EVOH, further pressuring prices. To offload excess inventory, producers are engaging in competitive pricing strategies, offering lower contract prices to attract limited buyers. Additionally, a decline in the cost of Ethyl Vinyl Acetate (EVA), a key feedstock for EVOH production, has provided some relief to manufacturers. However, this cost advantage has not been fully translated into lower selling prices.

As we transition into 2025, European EVOH producers face the looming threat of increased import volumes. If domestic suppliers fail to offer more competitive pricing, cheaper imported materials could erode market share.

However, EVOH prices in Belgium have remained stable during October to settle at USD 8050/MT, FOB Antwerp due to some countervailing factors. Sufficient spot supply and the off-season packaging demand were limiting upward price momentum. Moreover, a decline in the freight charges due to the end of peak shipping season has reduced the demand for shipping containers. Despite the downward pressure, the prices have remained unchanged during October due to a rise in supplier delivery delays. Moreover, a rebound in the downstream automotive sector and positive consumer sentiment have counterbalanced the demand for EVOH which led manufacturers to keep their prices intact during this timeframe.