Hamburg, Germany: In the latter half of July, the Ethylene Vinyl Acetate prices have stabilized in the European market as weak demand and moderate supplies have been offsetting the prices. Decreased demand for Ethylene Vinyl Acetate from the downstream solar encapsulation sector is attributed to oversupply in the major markets and the influx of cheaper Chinese counterparts. European demand for solar modules has also dwindled, along with installation rates and prices, according to data.

In the downstream footwear, recently, Nike's stock has plummeted following a forecast predicting an unexpected drop in annual sales, intensifying investor concerns about the sportswear giant's struggle to counter market share losses to emerging brands. The stock experienced its worst day ever, plunging 20% and erasing USD 28.41 billion from the company’s market valuation. Nike projected a mid-single-digit percentage decline in fiscal 2025 revenue, contrary to analysts’ expectations of nearly a 1% increase.

Recently, in Belgium, Borealis’s Ethylene Vinyl Acetate manufacturing facility in Zwijndrecht was under maintenance shutdown from 2024-07-06 to 2024-07-14 which had a short-term impact on the supplies. On the cost front, Although the price of raw material ethylene has slightly increased and vinyl acetate has decreased, there is still some support for the Ethylene Vinyl Acetate market. The expected pressure on the supply side has eased due to reduced Ethylene Vinyl Acetate production, while demand remains weak with only short-term rigid demand support. 

In the upstream Ethylene market, the prices rebounded across the European market during the first week of July due to supply constraints, which mitigated the impact of weak downstream demand. Additionally, a recent bullish rally in the upstream market has further supported the current pricing trend of Ethylene. Feedstock Naphtha prices have increased, driven by strong energy prices, which have resulted in high production costs for Ethylene in the domestic market, creating a bullish market sentiment among manufacturers. Moreover, Brent crude oil prices have reached their highest level, after a decline in US inventories.

On the demand side, the Ethylene Vinyl Acetate terminal industry has been operating weakly. Domestic petrochemical Ethylene Vinyl Acetate unit production dropped and the overall demand remains weak. Traditional downstream industries, such as foam shoe materials, cables, and wires, are gradually entering their off-season, providing weak support for Ethylene Vinyl Acetate. The consumption of photovoltaic materials is average, making it difficult to boost overall Ethylene Vinyl Acetate demand, resulting in sluggish market transactions.

According to the ChemAnalyst database, the prices of Ethylene Vinyl Acetate are anticipated to demonstrate further stable trend in the upcoming weeks backed by a rebound in consumer demand post the holidays and better market conditions.