In August 2023, the Ethylene Vinyl Alcohol Copolymer demand moderately dampened from the food packaging sector to produce Ethylene Vinyl Alcohol Copolymer sheet disposable containers due to the implementation of new rules on Packaging and Packaging Waste in the region. According to sources, the proposed Packaging and Packaging Waste Regulation, also known as PPWR, will increase the recycling practices and use of recycled materials for food packaging purposes. It will also ban some specific forms of packaging to reduce wastage. It aims to achieve recyclability by 2030 and incorporate recycled materials into the plastic packaging industry to contribute to the circular economy.

Consequently, the Ethylene Vinyl Alcohol Copolymer offtakes depressed slightly from downstream buyers due to reduced consumption rates of Ethylene Vinyl Alcohol Copolymer food packaging from the food sector. The available inventory levels of Ethylene Vinyl Alcohol Copolymer were also low, along with the demand, which kept the price range moderate. Meanwhile, reducing feedstock Vinyl Alcohol prices during the month reduced the upstream cost support and production costs of Ethylene Vinyl Alcohol Copolymer.

As per the latest ChemAnalyst data sources, the Ethylene Vinyl Alcohol Copolymer prices in the Netherlands settled at USD 9800/MT after witnessing a decrease of almost 1%. Meanwhile, in July 2023, the Ethylene Vinyl Alcohol Copolymer prices surged by 7.5%. The supply rates of Ethylene Vinyl Alcohol Copolymer were low from producers due to weak production rates amid a hike in Bank interest rates during June and the arrival of summer holidays in the region.

As per the sources, the high energy prices and interest rates and the decline in demand from buyers caused a slowdown in the Eurozone growth. Consequently, the Eurozone manufacturing Purchasing Manager’s Index decreased again during August 2023, like the past month, indicating further contractions in manufacturing activities.

As per the estimation, the Ethylene Vinyl Alcohol Copolymer market is likely to remain stable, and the price trend will improve marginally in the upcoming months as the cost support will boost due to energy and fuel prices will escalate with the beginning of Quarter 4 of 2023 because of increase in fuel consumption during winter. Furthermore, after the end of the summer holidays, economic activities will increase in the service sector, and people will spend their time at work. It will boost the consumption rates of packaged food. Consequently, it will impact the demand for Ethylene Vinyl Alcohol Copolymer sheets from the food packaging sector during the final quarter of 2023.