Antwerp, Belgium: In the first half of October, Ethylene Vinyl Acetate market has noted stability in Belgium as the market fundamentals have remained balanced. The demand for Ethylene Vinyl Acetate in European markets remains weak due to low consumption. The solar industry, one of the key user of Ethylene Vinyl Acetate, is seeing a drop in demand and a struggling market, leading to major job cuts among photovoltaic (PV) companies.

Businesses are reducing their workforce as sales decline and strategies shift. European manufacturers are also finding it hard to compete with cheaper solar modules from China. Overall, weak demand and tough competition with China continue to impact the Ethylene Vinyl Acetate market. On the cost front, the support from the upstream Ethylene and Vinyl Acetate Monomer (VAM) markets has decreased slightly in the previous weeks.

In the week ending on 18^th October 2024, the prices of Ethylene Vinyl Acetate 28% FOB Antwerp settled at USD 1700/MT.

The Ethylene Vinyl Acetate manufacturers have been operating at reduced rates due to sluggish consumer demand in the domestic market. As per the latest data, Belgium's industrial sector showed signs of mixed performance, with overall producer prices decreasing. Industrial activities remain more stable. Belgium's domestic market remained relatively steady, with a slight decrease in producer prices. However, the non-domestic market faced more significant challenges, leading to a sharper drop in prices for exports. Year-on-year comparisons suggest a broader decline in industrial activity, with both domestic and export markets under pressure, signaling some headwinds for the industrial sector.

The demand for Ethylene Vinyl Acetate in the European markets continues to remain weak due to poor consumption rates. The end-use solar industry is experiencing a downturn in demand and a weakening market, prompting significant cutbacks among photovoltaic (PV) companies, according to reports. Major job reductions are being implemented as businesses face declining sales and strategic shifts.

Demand for PV systems in private homes has dropped significantly, driven by reduced concerns over high electricity prices since the peak of the energy crisis, as well as higher interest rates and declining consumer purchasing power. Additionally, European manufacturers are struggling to compete with falling solar module prices, particularly against Chinese competitors. Overall, weak demand and heightened competition with China continue to hamper the Ethylene Vinyl Acetate market.

In September, TotalEnergies lifted the force majeure (FM) on Ethylene Vinyl Acetate supplies from its Gonfreville plant, signaling a potential shift in the European Ethylene Vinyl Acetate market. This development eased some of the supply constraints that had impacted the region due to the FM. With the resumption of regular Ethylene Vinyl Acetate supplies, European manufacturers and downstream industries, such as the solar and packaging sectors, see improved access to materials.

As per the ChemAnalyst pricing team, the prices of Ethylene Vinyl Acetate are anticipated to remain stable in the upcoming weeks as well owing to balanced supply and demand fundamentals.