Entering December 2024, Ethylene Vinyl Acetate (EVA) market in the U.S. remained stable, supported by stable feedstock costs and steady supply. However, by the second week of the month, EVA prices began to decline as destocking activities amidst reduced downstream demand influenced the market. This trend highlights the ongoing adjustments in the market as buyers and suppliers prepare for the year-end holiday season.

During the initial week of December, EVA prices in the U.S. held steady, reflecting stable feedstock costs, particularly for Vinyl Acetate Monomer. Domestic EVA manufacturers operated at consistent rates, maintaining sufficient supply in the market. Inventory levels among traders and distributors were adequate to meet moderate demand from packaging, footwear, and other downstream sectors.

In the second week of December, EVA prices began to show signs of softening. Market participants attributed this decline to destocking activities by distributors and end-users, as they focused on clearing inventories before the end of the fiscal year. Furthermore, reduced demand due to earlier procurement activities for the Christmas and New Year holidays compounded the price drop. Buyers who had secured sufficient EVA supplies in advance were largely absent from the spot market, leading to weaker purchasing activity.

The VAM market also contributed to the evolving EVA price dynamics. While VAM prices were stable during the first week, demand softness and ongoing destocking began to affect its trading volumes. Weak consumption in downstream sectors, including adhesives and paints, pressured VAM producers to offer more competitive pricing, indirectly influencing the EVA market.

The decline in EVA prices also reflects a broader trend of reduced industrial activity in the U.S. during the winter months. The packaging and construction sectors, two significant contributors to EVA demand, have seen subdued operations. Footwear manufacturing, while steady, has not offset the seasonal drop in demand from other industries. As per the latest data available, chemical producer prices declined by 0.3% in November, after a 0.6% increase in October. Prices for bulk petrochemicals and organics, plastic resins, synthetic rubber, manufactured fibers, and consumer goods decreased. Feedstock expenses rose by 3.9%.

Economic uncertainties have also played a role, with inflationary pressures and cautious consumer spending tempering growth in key downstream markets. The decreased demand from Latin American nations, especially Mexico and Brazil, also added to diminished export chances for U.S.-made EVA. In October, U.S. plastic resin exports dropped by 10.1%, leading to an 8.4% reduction in annual USD value. In terms of volume, plastic resins exports in October were 1.7 million metric tons, representing a decrease of 7.6% from September and a decline of 16.3% year-over-year.

According to the ChemAnalyst pricing team, as December progresses, EVA prices are expected to face continued downward pressure unless demand strengthens significantly in early 2025. Manufacturers and distributors are likely to adjust production and inventory levels in response to current market conditions, with a focus on balancing supply-demand dynamics. Stable-to-softening feedstock costs for VAM may further shape EVA price trends in the weeks ahead.