Texas, USA: In the first half of October, the US Ethylene Vinyl Acetate (EVA) prices have noted stagnancy.  Demand for EVA from the downstream packaging, solar, and footwear industries has remained firm as reported by the market participants. The demand for EVA continues to remain regular in the downstream solar panel encapsulation manufacturing segment. Market participants highlighted the ongoing impact of federal clean energy policies on the solar industry. In Q2 2024, the sector installed more of the new electric generation capacity. The latest assessment done by the ChemAnalyst pricing team, EVA 28% FOB Houston settled at USD 1830/MT in the week ending on 11th October 2024.

The cost support for EVA from upstream Vinyl Acetate Monomer (VAM) remained stable while, the Ethylene market prices have plunged by significant margins recently as the prices dropped by more than 24% in the past two weeks, easing cost pressure on the EVA manufacturers. Limited cost support from feedstock ethane contributed to the decline in ethylene prices. Additionally, export demand, remained sluggish due to weak downstream activity, contributing to the price drop of Ethylene.

Over the past two years, spurred by the Inflation Reduction Act (IRA), the industry has added significant solar energy capacity, while the solar industry saw strong growth in the second quarter, particularly in the utility-scale segment, future expansion faces challenges such as interconnection delays, equipment shortages, labor constraints, and uncertainty surrounding proposed tariffs and the upcoming presidential election. The sector is navigating a complex environment despite its recent successes.

The EVA manufacturers have been operating at reduced rates due to high material availability in the domestic market. Additionally, the manufacturing activities remained unchanged from August during September 2024, signaling a continued contraction in the manufacturing sector. However, the solar industry has been affected by the influx of cheaper goods from Asian markets, notably China which has impacted the domestic EVA manufacturing. In the recent past, U.S. solar panel manufacturing capacity has seen a fourfold increase since the passage of the Inflation Reduction Act, according to sources. However, despite this expansion, the industry is preparing for the upcoming tariffs on solar components from Cambodia, Malaysia, Thailand, and Vietnam, which are expected to take effect this fall and could impact the EVA prices as well. However, the solar association anticipates only a modest impact on solar deployment.

According to the ChemAnalyst pricing intelligence, the prices of EVA are anticipated to improve in the upcoming weeks on the back of improved consumer demand and stable feedstock prices.