Texas (USA): In the past few weeks, the prices of Ethylene Vinyl Acetate rose in the US domestic market as the supply and demand fundamentals underwent developments. The demand for Ethylene Vinyl Acetate from the downstream packaging, solar, and footwear industries further improved during this period. Despite economic challenges, the U.S. footwear market showed resilience during the first quarter. Retail sales stabilized at USD 9.1 billion, matching Q1 2023 figures, with a 1% increase in units sold, suggesting an increase in consumption of Ethylene Vinyl Acetate.

The Ethylene Vinyl Acetate market received stable support from upstream Vinyl Acetate Monomer and Ethylene markets in terms of costs. However, throughout April, upstream crude oil prices decreased, and concerns regarding input costs eased for Ethylene Vinyl Acetate manufacturers. International crude oil declined primarily due to an unexpected surge in US crude oil inventories, subdued demand forecasts, and a reduction in conflict-related risks.

In the downstream solar industry, some of the largest solar equipment manufacturers globally urged the government to impose tariffs on panels and cells from four Asian countries. The American Alliance for Solar Manufacturing Trade Committee alleges that Chinese firms operating in Malaysia, Cambodia, Vietnam, and Thailand are oversaturating the U.S. market with panels priced below production costs. This has led to a price drop of over 50%, endangering U.S.-made products and eventually impacting the Ethylene Vinyl Acetate market.

Additionally, manufacturers in the Ethylene Vinyl Acetate sector have also expressed worries about increased competition from China, which is impacting factories in Europe. Apart from this, the Federal Reserve's recent signals have sparked concerns among investors that anticipated rate cuts may not materialize as quickly as expected. The Federal Reserve refrained from specifying the timing of the rate cut, suggesting that the high-interest rate environment in the United States could persist for an extended period. This could result in increased borrowing costs, putting pressure on overall demand, including that for chemicals such as Ethylene Vinyl Acetate.

Moreover, the ocean container market has established a new operational pattern to circumvent the Red Sea region due to ongoing Houthi attacks. While low-water measures in Panama had minimal impact on container traffic, the easing of transit restrictions for the Panama Canal during the rainy season is seen positively in the industry. As a result, the Ethylene Vinyl Acetate supply chain has stabilized.

Some of the leading American solar manufacturing firms have called for decisive measures against inexpensive imports. They filed a petition with the Commerce Department, asserting that companies from four Asian nations are unlawfully saturating the U.S. market with panels subsidized by China. As per ChemAnalyst pricing intelligence, Ethylene Vinyl Acetate prices are anticipated to remain stable in the upcoming weeks due to stable supply and demand fundamentals.