European Ethylene Vinyl Alcohol Copolymer Prices Slide with Downturn in Packaged Food Sales

In November 2023, the demand for Ethylene Vinyl Alcohol Copolymer remained moderately low for food packaging purposes due to depression in packaged food demand from consumers. The decrease in vegetable and fruit prices amid increased cultivation rates in the Horticulture sector reduced the food prices. It negatively impacted the food inflation in the European region during the month. Consequently, the consumption rates of Ethylene Vinyl Alcohol Copolymer remained low in the food sector, and it raised the domestic inventory levels.

Similarly, the Ethylene Vinyl Alcohol Copolymer market remained underwhelming, as it showcased pessimistic sentiments during the last month. Consequently, the prices of Ethylene Vinyl Alcohol Copolymer fell by almost 7% due to dampened demand from domestic buyers and increased inventory levels. According to the reports, the region's recycling rates of paper and cardboard packaging are decreasing. At the same time, the feedstock Ethylene and upstream Naphtha prices eased during the first half of the month amid a decline in Brent Crude Oil prices due to stabilization in speculations around the supply chain disruptions in the Middle East amid conflict between Israel and Palestinian Islamist Group. Simultaneously, Ethylene Vinyl Alcohol Copolymer and other key feedstock Vinyl Alcohol prices decreased due to a decline in trading activities as the supplies were adequately available in the market and consumption rates were feeble. It reduced the production costs of Ethylene Vinyl Alcohol Copolymer.

As per the latest sources, PPWR- Packaging and Packaging Waste Regulation proposed new regulations and guidelines on 22 November 20223. It will boost the reuse or upcycle of the difficult-to-recycle paper for food packaging. Non-plastic food packaging products usually consume high energy and emit more Carbon dioxide during production. Simultaneously, the plastic packaging material used for the packaging purpose of fruits and vegetables is hard to recycle. So, the target is to upscale the use of non-plastic packaging in the future rather than recycle.

As per the assessment, the prices of the Ethylene Vinyl Alcohol Copolymer will increase at the end of the year 2023. The cost support will reduce as the feedstock Ethylene will decline further due to sluggish consumption rates from the domestic downstream industries amid the decrease in regional operating rates in the production units during the peak winter. Simultaneously, the demand for Ethylene Vinyl Alcohol Copolymer from the buyers will remain moderately low during winter. However, after the new PPWR Packaging and Packaging Waste Regulation amendment, the demand for petrochemical-based Ethylene Vinyl Alcohol Copolymer will decline for food packaging purposes.