Texas, USA: In December 2023, the Ethylene Vinyl Acetate market experienced further weakness in the US domestic market due to a decline in demand from downstream industries. Overall, consumer markets, including China, Singapore, India, and other nations, exhibited a slight reluctance towards new purchases due to surplus material availability. Consequently, market sentiments for Ethylene Vinyl Acetate remained weak. Additionally, heightened geopolitical tensions, notably the Red Sea attacks and the Israel-Gaza conflict, significantly influenced the Ethylene Vinyl Acetate market. Concerns about potential supply chain disruptions and the possibility of exacerbating the already tight supply-demand balance increased uncertainty in the market. Moreover, production costs of Ethylene Vinyl Acetate decreased amid low-cost support from raw materials. This month, the prices of upstream Vinyl Acetate Monomer dropped by 1.2%.

Furthermore, destocking practices were high this month as consumers avoided holding excess inventories of Ethylene Vinyl Acetate. Alongside destocking, the year-end holidays typically resulted in diminished industrial activity. Consequently, manufacturing companies chose to either slow down or temporarily suspend operations, contributing to the decline in demand for Ethylene Vinyl Acetate. Overall, businesses operated at a slower pace, and low market transactions were registered in the region. As of December 2023, the prices of Ethylene Vinyl Acetate (EVA) 28% FOB Houston were assessed at USD 1720/MT, reflecting a 1.7% drop from the previous month.

According to the ChemAnalyst database, the prices of Ethylene Vinyl Acetate are anticipated to demonstrate positive growth in the first quarter of 2024. This is supported by improved demand from downstream industries amid enhanced economic conditions. The US Federal Reserve plans to implement monetary policy easing, contingent upon the pace at which inflation subsides. Recent data indicating an increase in headline inflation in December could potentially lead the Fed to delay the easing of monetary policy. However, it is noteworthy that core inflation, which excludes volatile elements, continued to decrease, hinting at a positive underlying trend. In addition to this, the de-escalation of heightened chaos in the Middle East is also expected to positively impact the Ethylene Vinyl Acetate market. Anticipated for 2024 is recovery across all segments, with a projected 1.5% growth in overall chemistry output. It was noted that chemical companies experienced a decline in overall business activity and major customer demand during Q3 but anticipate improvement in the next six months. Given the chemical industry's early position in the supply chain, market analysts expect a rebound in chemicals before witnessing broader economic improvements.