European EVoH Prices Rise Amidst Supply Shortage, While Prices Fall in US

As per the sources, during quarter 2 of 2023, the Ethylene Vinyl Alcohol Copolymer (EVoH) price trend was strong in the European region, and prices increased by almost 8%. The reason is that the supplies were inadequately available in the market due to the reduced output rates. Consequently, the EVoH prices increased by producers due to weak production rates and low availability of supplies in the region amid consistent demand and consumption from the downstream food packaging industry.

On the contrary, the cost pressure on EVoH eased due to reductions in the feedstock Ethylene prices in the past months amid decreases in upstream Naphtha prices and declined demand from Polyethylene industries. Simultaneously, the feedstock Vinyl Acetate prices remained stable to low due to weak upstream support and stable inventory levels, which decreased the production costs of EVoH. Furthermore, the input costs eased further due to the decline in Natural Gas costs.

Conversely, in the US market, the EVoH prices decreased by almost 16% during the mid-quarter of Q2. EVoH supplies were sufficiently available in the market, while the offtakes were dampened from the downstream food packaging industry.

The production costs of EVoH declined as the feedstock Ethylene costs fell due to ample availability of supplies amid increased production rates after the restart of Chevron Philips Chemical in Sweeny, Texas, in the last week of April, with an Ethylene production capacity of 11 million pounds per day. Simultaneously, the contraction in feedstock Vinyl Acetate prices during the month was due to weak upstream support and stable inventory levels. The production costs eased further due to declining input costs with the temperature rise. Simultaneously, USA’s manufacturing PMI fell during May 2023, indicating a contraction in manufacturing activities, and remained below 50.

According to the ChemAnalyst data sources, the Belgium EVoH FOB Antwerpen prices settled at USD 9300/MT. Simultaneously, Ethyl Vinyl Alcohol Copolymer FOB Texas prices hovered at USD 7450/MT during the mid-quarter of Q2, 2023.

As per the estimation, “the EVoH prices will decrease during the Q3 of 2023 in the European region due to anticipated decline in the demand from the food packaging industry. The reason is the rising bank interest rates, impacting the pockets and purchasing power. Consumers will cut down their consumption and reduce their orders for packaged food. Meanwhile, in the North American region, the EVoH supplies are sufficiently available, so the orders will likely remain moderately low from the buyers.”