Ethylene Vinyl Acetate Prices Surge in USA Amid Improved Demand and Cost Pressures

Texas, USA: The Ethylene Vinyl Acetate market in the USA demonstrated positive development in March 2024, as prices rose owing to improved supply and demand fundamentals. Demand for Ethylene Vinyl Acetate from downstream industries such as packaging and solar noted further improvement during this period. The US economy continues to serve as a beacon of strength for container shipping demand, with import volumes remaining robust in March, indicating alignment with pre-pandemic growth trajectories. This resilience underscores enduring demand for containerized goods in the American market, positioning the US as a relative bright spot amid global economic fluctuations.

On the cost side of Ethylene Vinyl Acetate, support from the upstream Vinyl Acetate Monomer and Ethylene markets rose this month. Ethylene prices increased by 1.2%, while VAM prices increased by 2.9%, thereby pressuring Ethylene Vinyl Acetate manufacturing costs. Additionally, in the fourth quarter of 2023, US GDP expanded at an annualized rate of 3.4%, surpassing the previous estimate of 3.2%, leading to improved business conditions and an optimistic attitude. Demand remains robust, with a strong pipeline for orders indicating sustained momentum in economic activity. Freight rates have remained elevated, and supply chain constraints continue to impact trade. For March 2024, Ethylene Vinyl Acetate 28% FOB Houston settled at USD 1800/MT.

However, the downstream solar industry has been impacted by the influx of cheaper goods from Asian markets, particularly China, affecting the Ethylene Vinyl Acetate market. Many manufacturers intend to scale back expansion projects due to an oversupplied market and weak sales of domestically produced solar encapsulations, in which Ethylene Vinyl Acetate finds application. Reports indicate that more than 90% of global solar-grade polysilicon production is controlled by China-based firms. Import of solar modules into the US doubled in 2023. Presently, the US has negligible production capacity in crucial segments such as ingots, wafers, and solar cells, where Ethylene Vinyl Acetate finds application. Overall, demand for Ethylene Vinyl Acetate in downstream markets was strong, but overseas demand was moderate. Despite projections of a downturn in activity, performance continues to exceed expectations.

According to the ChemAnalyst database, Ethylene Vinyl Acetate prices are poised to showcase further incline in the upcoming weeks owing to increased demand and cost pressure from raw materials. The increase in seasonal demand from the downstream industries is expected to catapult the prices of Ethylene Vinyl Acetate in the US and European market. The outlook appears to be positive for the Ethylene Vinyl Acetate in the coming quarters.