For the Quarter Ending September 2024
North America
The third quarter of 2024 for Ethyl Vinyl Alcohol Copolymer (EVOH) in North America witnessed a challenging market environment characterized by decreasing prices. Several significant factors influenced market prices during this period. Supply pressure due to lower demand from downstream industries, particularly the packaging sector, led to a global oversupply of EVOH. Weak consumer spending sentiment, high borrowing rates, and decreased production costs further contributed to the declining prices.
Despite previous market expectations of a demand pickup in September, driven by buyers preparing for the winter holidays, demand has remained consistently slow. This has put sustained pressure on the EVOH market, with overall market transactions remaining low which led producers to lower their offer levels, further contributing to the price slump during September 2024.
In the USA, the market experienced the most significant price changes, with a notable -4% decrease from the previous quarter. The quarter ended with EVOH priced at USD 8100/MT FOB Texas in the USA, reflecting the prevailing negative sentiment in the pricing environment.
APAC
The third quarter of 2024 has been challenging for the Ethyl Vinyl Alcohol Copolymer (EVOH) market in the APAC region, with prices experiencing a significant decrease. Various factors have contributed to this trend, including oversupply in the market and reduced demand from downstream industries. These challenges have led to a bearish market sentiment, impacting pricing dynamics. In Japan, the market has seen the most significant price changes, reflecting the overall downward trend in the region. Japan's EVOH prices have been influenced by similar factors, with lower production costs due to low priced feedstock ethylene vinyl acetate and weak demand contributing to the price decline. The correlation between these factors and the price changes has been evident throughout the quarter, showcasing a consistent negative trend. Additionally, the price change from the previous quarter in 2024 recorded at -5% highlights the ongoing downward trajectory. The quarter-ending price of USD 7950/MT of Ethyl Vinyl Alcohol Copolymer FOB Osaka in Japan reflects the overall decreasing pricing environment.
Europe
In Q3 2024, the Ethyl Vinyl Alcohol Copolymer (EVOH) market in Europe experienced a significant downtrend due to reduced purchasing power amid high energy costs and economic slump. Despite certain logistical challenges, the price of ethyl vinyl alcohol copolymer (EVOH) in France showed a declining trend in July 2024. Overproduction of EVOH occurred globally during this period due to lower production costs from an excess of ethylene vinyl acetate (EVA) and weak demand from the downstream packaging sector led to price slump. The summer holiday season and the poor economic conditions throughout Europe severely reduced demand in August as the recovery of demand in September has not gone as smoothly as anticipated. The global ease in freight charges has provided some respite to the supply chain further impacting the EVOH market. Additionally, the buying appetite for import material has also been minimal, as there is no arbitrage from Asia registered despite storms and Typhoon during September 2024. European EVOH makers remain well-supplied domestically, further limiting the need for imports during this timeframe.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Ethyl Vinyl Alcohol Copolymer (EVOH) exhibited a mixed trend, from bullishness toward bearishness. Previously, due to the market's booming cosmetics sector, the EVOH market saw a significant demand for cosmetic packaging. According to Circana, U.S. beauty sales increased by $600 million in Q1 2024. Mass sales grew by 2%, whereas prestige sales increased by 9%.
In the meantime, the market encountered a moderate level of stock availability, which was brought on by the moderate operating rates at production facilities. This was mainly because there was a restricted supply of feedstock and steady offtakes from importers and buyers. As a ripple effect, several manufacturers have raised their offerings which led to a strong price trend for EVOH during April 2024.
However, the market declined during June 2024 amidst a low demand from the downstream packaging sector. Despite the typical seasonal uptick in demand for packaging applications, prices remained low due to ample stockpiles and muted consumer demand. Inflationary pressures further dampened buying interest, while consistent supply chain disruptions prevented any significant price drops.
APAC
In Q2 2024, the Ethyl Vinyl Alcohol Copolymer (EVOH) market in the APAC region exhibited a mixed sentiment leading to a downward pricing trend. Previously, the Asian market's booming downstream cosmetics industry drove significant demand for cosmetic packaging in the EVOH market. In Q1, 2024, L'Oréal reported a 6.2% increase in sales. The market, on the other hand, saw intermediate stock availability due to moderate operating rates at manufacturing facilities, which were mostly driven by a shortage of vinyl alcohol feedstock and steady offtakes from importers and buyers. Japan's Producer Price Inflation reached its highest level in four months in April 2024, rising from 0.20% in March to 0.30%. Henceforth, several producers have raised the offered quotations for EVOH during May 2024. However, the quarter's price decline was attributed to subdued demand from the downstream packaging industry, lingering supply chain disruptions, and unanticipatedly high inventory levels during June 2024. Weakening demand was exacerbated by falling ethylene vinyl acetate (EVA) spot prices, a crucial feedstock for EVOH production, which subsequently lowered production costs. Persistent logistical issues, such as port congestion and increased freight charges due to the Red Sea situation, further hampered market dynamics, though they were insufficient to offset the overall negative sentiment.
Europe
In Q2 2024, the Ethyl Vinyl Alcohol Copolymer (EVOH) market in Europe experienced a mixed market sentiment. Previously, the EVOH market in France exhibited a bullish sentiment from the downstream cosmetic sector. However, the trend was lowered in June 2024 due to the ample availability of stocks. The European market's booming cosmetics sector drove significant demand for cosmetic packaging in the EVOH market. With a 7.3% increase in revenue in Q1 2024, Beiersdorf demonstrated impressive growth at the end of April. A provisional agreement has been reached by the European Parliament and Council on legislation aimed at addressing packaging waste and promoting the circular economy. The suggested actions center on enforcing refill rules, establishing reuse targets, boosting the usage of recycled materials in packaging, and establishing sustainability standards. These programs seek to lessen packaging waste and encourage Europe's packaging sector to be more ecologically friendly. However, in June 2024, a primary reason for the downward pressure on prices was the sluggish demand from key downstream industries, including the packaging and bottling sectors. Rising inflation and cautious consumer spending due to economic uncertainties further dampened market sentiment. Additionally, ample stock availability and lower production costs, attributed to decreased ethylene vinyl acetate (EVA) feedstock prices, contributed to the negative pricing environment.
For the Quarter Ending March 2024
North America
In Q1 2024, the price trend of Ethyl Vinyl Alcohol Copolymer (EVOH) fluctuated in the North American region. At the beginning of the first quarter, prices rose marginally due to firm demand from buyers for stocking purposes, driven by increased consumption of food packaging amid rising food demand in the region.
During the mid-quarter, production rates remained steady among producers. However, demand for EVOH decreased in the international market due to cautious buying activities from buyers, leading producers to lower their quotations amid increased stock availability.
The international air cargo market witnessed increased demand for the third consecutive month in March, fuelled by e-commerce expansion and shipping disruptions in the Red Sea, impacting air freight rates and supplies to the international market. Towards the end of the first quarter of 2024, the food sector saw a surge in demand for EVOH sheets for packaging purposes, driven by increased consumer orders for the Easter festival in the region. Consequently, suppliers raised their prices to improve their profit margins. At the end of Q1, Ethyl Vinyl Alcohol Copolymer FOB Texas quotations in the USA were assessed at USD 8670/MT.
APAC
The Ethyl Vinyl Alcohol Copolymer (EVOH) market displayed mixed sentiments in the APAC region during Q1 2024. At the quarter's outset, prices rose as demand remained strong from buyers for stocking purposes, driven by increased consumption of food packaging ahead of the Lunar New Year and spring festivals in the Asian region, alongside a rise in food prices. Concurrently, production was affected by the limited availability of Ethylene feedstock and upstream supplies. The heightened risks of supply chain disruptions arose amid ongoing tensions in the Middle East following a missile attack on an oil tanker off the coast of Yemen. This incident led to increased ship traffic on ocean routes and impacted Crude Oil supplies by OPEC+. Midway through the quarter, supply availability improved in the regional market due to reduced offtakes from regional buyers like China, as the market was closed for the Lunar New Year holidays. Additionally, the MHLW (Ministry of Health, Labor, and Welfare) in Japan revised the positive list of substances for use in Food Contact Materials (FCMs). Towards the quarter's end, the food sector demonstrated stable demand for EVOH packing sheets amidst rising temperatures in the Northern Hemisphere. In conclusion, Ethyl Vinyl Alcohol Copolymer FOB Osaka quotations witnessed USD 8630/MT at the end of Q1 2024.
Europe
In the European market, the Ethyl Vinyl Alcohol Copolymer (EVOH) price trend fluctuated during the first quarter of 2024. Initially, prices rose marginally as demand remained strong from buyers for stocking purposes. Meanwhile, disruptions in production and supply chain activities due to ongoing trade tensions and geopolitical uncertainties stressed the availability of supplies. Midway through the quarter, orders for EVOH food packaging sheets remained slightly weak in the food sector amid a rise in food inflation. Additionally, the region's new PPWR Packaging and Packaging Waste Regulation draft was slated to be finalized by the end of April 2024 and was in the final stages of negotiations. The second and concluding political trilogue regarding PPWR was held in Brussels on March 4, 2024, during which the co-legislators reached a provisional political agreement on the text. In the meeting, EUROPEN's Secretary General expressed appreciation for the efforts made by EU co-legislators to find a balance between ambitious environmental objectives and the pragmatic considerations of implementation within the packaging industry. There was a growing demand for barrier materials that do not impede the circular use of resins like Polyethylene, commonly used as packaging material in commercial applications. Towards the end of the quarter, the food sector exhibited strong demand for EVOH packing sheets amid rising temperatures in the Northern Hemisphere and increased consumer orders for the Easter festival in the country. Ultimately, at the end of Q1, Ethyl Vinyl Alcohol Copolymer FOB Antwerp in Belgium was priced at USD 8720/MT.
For the Quarter Ending December 2023
North America
The North American market for Ethyl Vinyl Alcohol Copolymer (EVOH) witnessed a bearish to stable trend in the fourth quarter of 2023. The price of EVOH decreased by almost 4% in Q4, 2023, compared to the previous quarter. Initially, the demand for EVOH remained low to moderate for the food packaging purposes due to moderate orders for packaged food amid an increase in food inflation in the region.
Additionally, the shift in buyers’ interest towards recyclable materials and reductions in the use of petrochemical based EVOH for food packaging negatively impacted the offtakes. During the mid-quarter, the demand improved slightly from the buyers during due to increased orders for packaged food during the Thanksgiving Holiday.
Meanwhile, the cost support declined from the feedstock Ethylene amid a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations and increased refining capacity in the region. Toward the end of the quarter, demand remained moderate amid stressed supply rates through the Mississippi River. At the end of fourth quarter of 2023, the EVOH FOB Texas prices in the USA hovered at USD 8730/MT.
Asia
In the Asian region, the prices witnessed a decrease of almost 5% during the final quarter compared to the previous quarter of the year. At the beginning of the quarter, the inventories were adequately available in the market, while the cost support declined from the feedstock Ethylene during the month due to reduced offtakes from Glycol industries. This decline was mainly driven by increased inventory levels and declined demand from packaging industries amid switching buyer interest toward recyclable materials and reductions in the use of petrochemical based EVOH for food packaging purposes. In the mid-quarter, the supply of EVOH remained low to moderate during the mid-quarter, as production rates were affected due to the stressed availability of feedstock Ethylene amid the plant shutdown at Eneos Corp. Towards the end of the quarter, demand continued to remain low amid the affected supplies to the buyers due to supply chain disruptions after the Red Sea attacks in the Middle East region. At the end of the quarter, the price for EVOH FOB Osaka in Japan hovered at USD 8660/MT.
Europe
The fourth quarter of 2023 was characterized by a bearish market for Ethyl Vinyl Alcohol Copolymer (EVOH) in the European region. The price of EVOH decreased by almost 11% during the quarter compared to the previous quarter of the year. Several factors contributed to this decline in prices. Firstly, there was a decrease in demand from the regional packaging industries amid switching buyer interest toward recyclable materials and reductions in the use of petrochemical based EVOH for food packaging purposes. which led to lower offtakes. Additionally, the cost support from the feedstock Ethylene decreased due to reduced offtakes from Glycol industries and increased availability of inventory. Simultaneously, the decline in prices of the feedstock Vinyl Alcohol also impacted the production costs of EVOH. Towards the end of the quarter, the orders for EVOH sheets were stable from the food sector as the EU council agreed on the PPWR- Packaging and Plastic Waste Regulation commitment to reduce and prevent plastic waste and meet targets for 2030 and 2040. At the end of the Q4, 2023 the EVOH FOB Antwerp in Belgium witnessed at USD 8660/MT.
For the Quarter Ending September 2023
North America
The Ethyl Vinyl Alcohol Copolymer prices oscillated in the North American region during the Q3 of 2023 amid moderate demand and supply dynamics. Initially, producers kept their operational rates moderately low due to escalation in feedstock prices amid hike in bank interest rates by Federal Reserve Bank, which impacted the supply rates in the market. Simultaneously, the supply rates were inadequate due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels. During the mid-quarter, supply raised improved, and prices dropped marginally amid rise in inflation and declined demand from buyers. Meanwhile, the hike in bank interest rates by Federal Reserve Bank to cool down the rising inflation impacted the demand from buyers, causing a slowdown in economic growth of the US region. Towards the end of Q3, prices rose marginally amid stable demand and stressed production rates due to limited availability of feedstock Ethylene supplies because of upstream Crude Oil production cuts by OPEC+ and Russia. Conclusively, at the end of Q3 of 2023, Ethyl Vinyl Alcohol Copolymer prices in the USA witnessed USD 9100/MT.
Asia
The Ethyl Vinyl Alcohol Copolymer showcased bullish movement in the Asia, and prices rose by almost 15% during the 3rd quarter of 2023. At the beginning of the quarter, production rates were affected because of shortage of upstream Acetic Acid in the Asian region. During the mid-quarter, price trend remained firm due to moderate demand-supply dynamics amid storms and typhoons like Doksuri, Saola and heavy rainfall in the region. Simultaneously, the upstream Ethylene cash margins in the Northeast Asian countries fluctuating below zero, instigated and upheld by the economic slowdown along with geopolitical differences amongst the nations. Towards the end of the quarter, prices rose again due to moderate production rates amid stressed availability of feedstock supplies. The Crude Oil production cuts by OPEC+ and Russia limited the feedstock Ethylene availability. Simultaneously, Japan tightened their supply rates amid increase in demand from food sector and high procurement activities before the Autumnal Equinox Holiday. At the end of Q3 2023, Ethyl Vinyl Alcohol Copolymer prices in Japan and Taiwan witnessed USD 9100/MT and USD 8600/MT, respectively.
Europe
Like the North American region, the 2023 Ethyl Vinyl Alcohol Copolymer price trend fluctuated in Europe during the Q3 of 2023, and prices inclined by almost 8% during the quarter. Initially, the production rates were low amid high input prices. The Eurozone manufacturing Purchasing Manager’s Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities during summer holidays in the region and moderation in procurement activities from downstream buyers. During the mid-quarter, buyers declined their offtakes amid introduction of Packaging and Packaging Waste Regulation, which will use recycled materials for food packaging. At the same time, cost support was high on upstream Ethylene due to escalation in Brent Crude Oil prices amid stressed Crude Oil stocks due to production cuts by global refineries. It raised the product prices towards the end of the quarter amid stable demand from food sector. At the end of the quarter, Ethyl Vinyl Alcohol Copolymer prices in Belgium hovered at USD 9700/MT.
For the Quarter Ending June 2023
North America
The Ethyl Vinyl Alcohol Copolymer prices seesawed during the Quarter 2 of 2023. At the beginning of the quarter, the prices increased due to the increased production costs due to an escalation in upstream cost support from feedstock Ethylene amid volatile upstream Crude Oil prices. The production rates were moderately low due to an increase in labor costs amid shortages of labor due to the rise in recession in the region. Meanwhile, cost pressure decreased on feedstock Ethylene prices during mid-Q2 due to the contraction in upstream prices and reduced consumption rates amid a drop in fuel demand with the temperature rise. Simultaneously, the feedstock Vinyl Acetate prices fell consistently during Q2 due to a contraction in upstream Acetic Acid prices and negatively impacted the cost support on EVOH prices. Towards the end of the quarter, prices soared again amid the low availability of supplies and increased costs amid a hike in bank interest rates by the Federal Reserve, which raised the product prices in the market. At the end of the quarter, Ethyl Vinyl Alcohol Copolymer prices in the USA witnessed USD 8500/MT.
Asia
The Ethyl Vinyl Alcohol Copolymer price trend showcased mixed sentiments during Q2 of 2023. At the beginning of the quarter, the imports and trading activities were firm and rose before the Labour Day holidays in the key regional importer China. Meanwhile, supplies were inadequately available, and production rates were moderate. However, in the H2 of the quarter, the demand declined from the regional food packaging industry, and prices decreased due to improved availability of supplies. Simultaneously, the contraction in the feedstock Ethylene costs amid a decrease in upstream Naphtha prices reduced the production costs. Towards the end of the quarter, the price trend stagnated amid limited availability of supplies and moderate operational rates in the region, which kept the demand-supply dynamics stable during the final month of Q2. Furthermore, buying activities rose in China before the Dragon boat festival. Conclusively, at the end of Q2, 2023, Ethyl Vinyl Alcohol Copolymer prices in Indonesia and Taiwan witnessed USD 8100/MT and USD 7400/MT, respectively.
Europe
The Ethyl Vinyl Alcohol Copolymer price trend shifted momentum in the European region during Q2 of 2023. Initially, prices were firm and rose due to the stressed availability of supplies and strong demand from downstream food packaging industries. The available inventory levels remained limited till the mid-quarter amid consistent offtakes from the buyers. Meanwhile, the production costs were low during the quarter due to the consistent declines in the feedstock Ethylene and Vinyl Acetate prices amid volatile Crude Oil prices and a decrease in the upstream Acetic Acid prices. At the end of the quarter, the decline in the price intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Conclusively, the Ethyl Vinyl Alcohol Copolymer prices in the Netherlands and Belgium witnessed USD 9200/MT and USD 9000/MT, respectively, at the end of Q2.
For the Quarter Ending March 2023
North America
In the US market, Ethyl Vinyl Alcohol (EVOH) Copolymer prices have increased dramatically as the demand fundamentals outpaced the available supply in the first quarter of 2023. The material availability remained mostly snug in the US, with limited inventories to cater to the available demand from downstream packaging and other industries. Meanwhile, there were no plant shutdowns reported during the first quarter, and operating rates remained under check. Furthermore, import flow was also weak on the US shores while the US Ports of Long Beach and Los Angeles witnessed a shortage of labor and dockworkers, which eventually led to the temporary shutdown of the ports.
APAC
In the first quarter of 2023, Ethyl Vinyl Alcohol (EVOH) Copolymer prices increased dramatically after an initial bearish rally as the demand fundamentals outpaced the available supply, and market participants looked to secure the material. Market participants reported deteriorating inventory levels while production rates remained under pressure, and material availability in the domestic market was largely snug in Q1 2023. Import flow was also weak in the Chinese market. Meanwhile, the demand from downstream food packaging increased sharply while the consumption from automotive and other industries maintained stable volume intakes.
Europe
The European market witnessed a sharp rise in the Ethyl Vinyl Alcohol Copolymer (EVOH) prices in the first quarter after a sluggish start in January 2023. EVOH prices declined in the backdrop of weak demand sentiment in the first month of the quarter. However, market sentiment improved into the quarter, and prices showed substantial increases in the next two months as market participants looked out of sorts in order to secure the material. There were limited imports on the European shores, and material availability remained snug owing to weak production rates and logistics issues observed throughout Europe. Meanwhile, freight charges and shipping costs to and from the European nations remained sluggish throughout the quarter.
For the Quarter Ending December 2022
North America
The prices of Ethyl Vinyl Alcohol Copolymer have retained their downward trajectory in the US market throughout the fourth quarter of 2022. The decline in Crude Oil costs has deteriorated the operational costs of EVOH Copolymer in the domestic region. The demand from the downstream food packaging industries was relatively low, and the market shipments were general. There was a regular flow of the material in the market as no supply constraints have been reported. Furthermore, the low-demand season in December, combined with declining freight costs, has further pressured the market growth of EVOH Copolymer. Prices of Ethyl Vinyl Alcohol Copolymer FOB Texas were assessed at USD 6690 per ton at the end of the fourth quarter.
APAC
The drop in procurement, coupled with fluctuating upstream raw materials costs, has pressured the market sentiments for EVOH Copolymer in the Chinese market. The resurgence of COVID cases has impacted transportation and logistics across the country. The demand from the downstream packaging industries has remained on the lower end in the domestic region. The market players have reported that on-demand purchases were not sufficient to support the market rise of EVOH Copolymer. In December, the destocking season culminated in slashed offers of EVOH Copolymer for the end-use industries. The procurement from the overseas market has also remained lackluster, and the EVOH Copolymer prices have tumbled. Consequently, Ethyl Vinyl Alcohol Copolymer CFR Qingdao was settled at USD 5940 per ton in December.
Europe
In the fourth quarter of 2022, the prices of EVOH Copolymer have demonstrated mixed market sentiments. The prices of EVOH Copolymer first improved and then gained a downward momentum in November in the Netherlands. The downward shift in the market values of Brent Crude Oil has impacted the price realizations of EVOH Copolymer. The market players have informed that the supply challenges have been eased, and the operative rate of the manufacturing units was regular in the domestic region. The offtakes from the downstream food and beverage industries have remained weak. The sluggish procurement has been attributed to a drop in the end-use industries' purchasing power amid the European region's inflationary pressures. The ChemAnalyst database has shown that Ethyl Vinyl Alcohol Copolymer CFR Rotterdam prices concluded at USD 6630 per ton in Q4-end.
For the Quarter Ending September 2022
North America
In the USA, the pricing trend of EVOH Copolymer has witnessed a fluctuating trajectory in the third quarter. On the upstream cost front, the prices of Ethylene have retained their downward trajectory throughout the third quarter. The tight monetary policies imposed by US Federal Reserve to combat the rising inflation have offset the market sentiments of EVOH Copolymer in the regional market. The increased stockpile amid the weak demand from the downstream packaging industries has decelerated the market growth of EVOH Copolymer. Furthermore, in late Q3, stable consumption rates have kept the production rates regular in the domestic market, and the logistics constraints, along with port congestions on US Gulf Coast and East Coast, have pressured the supply dynamics. Thus, Ethyl Vinyl Alcohol Copolymer FOB Texas prices were concluded at USD 6805 per ton in September.
Asia-Pacific
Ethyl Vinyl Alcohol (EVOH) Copolymer's prices have demonstrated mixed sentiments in China's domestic market throughout Q3. The resurgence of covid cases hampered the production capacities of manufacturing firms in July. The market participants were reluctant to clear their existing inventories instead of ordering newer stocks. The cost support from upstream Ethylene was not strong among the manufacturers. Furthermore, a drop has been observed in manufacturers' quotations, foreseeing a bearish demand outlook and plummeting energy material prices. In the late-Q3, the offtakes from the downstream packaging industries were insufficient to raise EVOH copolymer prices in the regional market. The market players have also reported that the reduction in freight charges has resulted in weak prices of EVOH Copolymer in the international market. Therefore, Ethyl Vinyl Alcohol Copolymer CFR Qingdao was settled at USD 7865 per ton in September.
Europe
In the third quarter, the pricing dynamics of EVOH Copolymer declined in the Dutch market. The adequate availability of the product in the downstream packaging industries has resulted in reduced offtakes for the EVOH Copolymer. The retaliatory actions resulting from the Russia-Ukraine war have reduced natural gas supplies to European nations. As a result, the rising cost of input materials has seeded inflationary pressure in Europe's major economies and deterred the end-use consumer purchasing power. During the mid-third quarter, the market transactions have remained average, and the domestic market has observed a softer pricing trend in the quoted offers. The manufacturers were forced to slash their quotations as the downstream demand showcased no significant growth. Ethyl Vinyl Alcohol Copolymer CFR Rotterdam Prices were assessed at USD 6670 per ton in Q3-end.
For the Quarter Ending June 2022
North America
The EVOH market during the second quarter of 2022 showcased growth in the North American region on the back of surging feedstock, Vinyl Acetate Monomer prices in the regional market. The demand from the food packaging industry remained active in the regional market as EVOH provides barriers for many gases such as oxygen and nitrogen. As the demand from end users remained active, EVOH buys frequently enquired about the product. This inquiry led to a high operational rate of Ethyl Vinyl Alcohol Copolymer in the domestic market. As compared with the previous quarter, the market prices slowed down as the automotive sector was sluggish in the regional market, influencing the market prices of EVOH in North America.
Asia Pacific
In the Asia Pacific region, Ethyl Vinyl Alcohol Copolymer prices have followed an upward trajectory throughout the second quarter of 2022. The Asian market remained quiet throughout the quarter as China implemented a lockdown in some of the country's commercial hubs. Crude oil prices remained tight, influencing the feedstock and ethylene prices in the regional market. Inclination in feedstock prices led to the high production cost of the product in the Asian market. Major manufacturers faced tight product supply from European countries, leading to supply shortages to cater to domestic demand. The demand from downstream sectors such as food packaging and automotive sectors was firm in India, Japan, and other Asian countries.
Europe
During the second quarter of 2022, Ethyl Vinyl Alcohol Copolymer market sentiments followed the uptrend in the European market because of commodity inflation. As compared with the previous quarter, the market prices weren't declined despite the active downstream demand in the regional market. Furthermore, the shortage of feedstock, mainly Vinyl Acetate monomer, was faced by the regional EVOH manufacturers from primary due to port congestion. Crude oil prices also remained high, leading to less transportation on the road, creating a gap between supply and demand frequency. The demand from food packaging sectors remained stable as the demand for packed food items elevated in the domestic market. Moreover, the automotive and construction industries were sluggish in the regional market.
For the Quarter Ending March 2022
North America
The EVOH market during Q1 of 2022 demonstrated signs of bullishness driven by the strong feedstock - Vinyl Acetate Monomer market upon falling upstream Ethylene supplies in the region after the fire accident in ExxonMobil's Baytown refinery. The demand from the food packaging industry showed headwinds, with downstream buyers posing ample enquiries for the product under the market optimism during this quarter. However, the construction and automotive sectors could not exert significant pressure on the EVOH market due to these sectors' slowdown. The spot prices also showed firmness with significant shipping challenges and rising demand from the international market. Climbing up by 10% from the last quarter's prices, EVOH prices surged to USD 6443/MT FOB Texas in March.
Asia Pacific
In Asia, prices of Ethyl Vinyl Alcohol Copolymer have continued to trace upwards throughout the first quarter of 2022 under the impact of inflationary pressure from the skyrocketing upstream Crude Oil. Imports from South Korea and Japan remained scarce for the rest of the quarter on the Russia-Ukrainian conflict. EVOH market experienced the most profitable sales during this timeframe with the increased consumption from the food-packaging sector. A surge in feedstock Ethylene and VAM comonomer prices also led to escalating costs of Ethyl Vinyl Alcohol Copolymer. In India, the price of EVOH Copolymer towards the end of the quarter was observed to be USD 7776/MT Ex-Mumbai.
Europe
During Q1, the Ethyl Vinyl Alcohol Copolymer market in the Netherlands showcased a strong inclination, roughly about 13% in prices compared to the last quarter. Due to the lingering shortage in feedstock, mainly Vinyl Acetate monomer imports from the USA, strengthened import costs led to this escalation of EVOH prices. The continued energy crisis in the region also impacted the EVOH market. Mitsubishi’s (UK) positive base price revisions on its EVOH product lines caused insufficient product supplies for the end-user consumption across the region. Thereby increased the demand fundamentals from the highly consuming downstream industries like food packaging, automotive, construction, and water treatment plants, which brought about the prices to reach USD 7070/MT for Ethyl Vinyl Alcohol Copolymer CFR Rotterdam towards the quarter ending March.
For the Quarter Ending December 2021
North America
The North American EVOH market seesawed during Q4-2021 under the influence of vulnerability in feedstock supplies, production rates and demand fundamentals. The EVOH prices, upon retraction from record levels achieved in Q3-2021, demonstrated bearish trends during October, on account of slowly improving vinyl acetate monomer (VAM) feedstock supplies with resumption of productions in the Ida hurricane-hit facilities. The easing supply-chain constraints and stable downstream demand further pacified the EVOH prices during November. However, the prices in December hit higher with positive revisions implemented by Mitsubishi’s specialty chemical subsidiary Nippon Gohsei Co., Ltd. The inexorable increase in demand from the packaging sector under market optimism during Covid resurgence also supported the price rise of EVOH, causing it to settle at USD 5880/MT FOB Texas.
Asia
The Asian EVOH market bore the cost pressures from stronger ethylene and VAM feedstock market performance and their supply uncertainties owing to the globally dominant container crisis. The sluggish demand prospects during the initial weeks of the quarter propelled traders in China to adopt a wait-and-see policy causing the imports from Taiwan to decline due to low buying interest. However, the prices kicked off during December with gradually increasing demand from the food packaging sector causing the CFR prices to turn on the upside settling at USD 5197/MT. In India, the demand continued to stride upwards with enquiries becoming more frequent towards the closing weeks of the quarter with increasing consumer preferences for packaged food during Covid restrictions. Taking support from the inflationary pressure exerted by the global market coupled with consistent offtakes from the downstream sectors the traded EVOH prices in India went on an unabated rise throughout the quarter with the Ex-Mumbai offers trading around USD 7570/MT during December.
Europe
The European EVOH market witnessed a steady rise in prices with the lingering shortage in VAM imports from the USA which improved gradually upon inventory buildup in the exporting country. However, the input costs gained strength from feedstock vessel delays and the continuing energy crisis in the region, both of which got relaxed to a certain extent during the November end. However, the price hike of EUR 500/Ton made by Mitsubishi (UK) effective from December 1st for its EVOH product lines sent ripples to the prices across all the European countries. The demand from the packaging sector also showed an uptick during the last month of the quarter causing the domestic and spot prices to stay firm. The discussions for EVOH settled at USD 5898/MT FD South Hampton UK and USD 6192/MT FOB Antwerpen Belgium in December month.
For the Quarter Ending September 2021
North America
In Q3 of 2021, the EVOH market outlook experienced an upward rally in the North American region backed by the tightened supplies and firm demand from the downstream packaging industry. Scarcity of the upstream Vinyl Acetate monomer impacted the production rate of the product and consequently pushed up its prices in this timeframe. Moreover, many manufacturers were compelled to shut down their manufacturing units ahead of the Ida hurricane in the Gulf Coast of the USA in August end as a contingency plan. It resulted in the supply chain disruption as well as impacted the overall production rates in the region in Q3 which further contributed to the hike in the prices of EVOH in this quarter.
Asia Pacific
In the Asian markets, EVOH prices reported an upward trend in the third quarter of 2021. Several factors such as constrained supply of the raw materials along with the firm demand from the downstream packaging sector contributed to the inflation in the prices of EVOH in this timeframe. In China, congestion at several ports followed by the corona virus zero tolerance policy led to the supply chain disruption that consequently impacted the EVOH regional market and resulted into the hike in its values in this quarter. Likewise in India, a steep climb in the values of EVOH was observed throughout the quarter backed by the squeezed supply of the feedstocks coupled with the improved demand from the domestic packaging sector and continuous growth in E commerce in this timeframe. Thus, EVOH copolymer (Blow Moulding) Ex-Depot Mumbai prices rose from USD 6709.85 per MT to USD 6973 per MT during July to September.
Europe
In Europe, EVOH market witnessed an upward trend backed by the improved offtakes from the downstream packaging sector during the third quarter of 2021. Lower imports of the feedstock VAM from USA as an impact of Ida hurricane coupled with the delayed imports from Asia due to congestion on several ports of China led to the hike in the values of EVOH in the region in this timeframe. Moreover, soaring freight charges across the US-Europe and Europe-Asia interoceanic trade routes and shortages of shipping containers further sent ripples to the price in Europe during this quarter.
For the Quarter Ending June 2021
North America
EVOH supplies continued to stay impacted in the North American region due to shortage of the key feedstock Vinyl Acetate monomer (VAM). Some market observers reported strong sentiments to replenish the inventories of the raw material which raised procurement costs. Several manufacturing facilities were observed operating at reduced efficiencies due to limited availability of the raw material which further supported the upward price trajectory. Soaring container freight added to the supply pressure. Kuraray, the leading Asian Ethylene Vinyl Alcohol polymer (EVOH) producer announced positive revision in the prices for the market. Demand remained firm from the downstream packaging industry.
Asia Pacific
EVOH supplies in the Asia pacific region were tight in the first half of the second quarter as several upstream Acetic Acid and VAM plants were on a planned turnaround in several parts of Asia which caused hinderance to the production of EVOH. In May, Labour day holidays in China curtailed the supplies to some extent adding further pressure to the EVOH market outlook. Demand witnessed improvement due to pick up in commercial activities in China which increased the offtakes from the packaging industry. Affected with the surging prices of the key feedstock chemicals, the prices of EVOH in India witnessed a slight improvement taking Ex-Works prices to settle around USD 7800 per tonne in June.
Europe
During Q2 2021, the supplies of EVOH in the European region were gradually improved owing to the increment in the feedstock VAM from USA as the petrochemical producers in the gulf region restarted after the disruptions caused by winter storm Uri. Whereas the Asian cargoes were delayed due to the Suez Canal blockage in quarter starting. The market sentiments were strengthened throughout the quarter as buyers stocked up material before the upcoming hurricane season in the US. Demand was consistent from the downstream plasticizers industry which showed mixed sentiments due to lockdown restrictions in some importing countries.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the EVOH market fundamentals were weighed under strong values of feedstock VAM, followed by the series of plant outages in US Gulf coast and nearby area including Kuraray America Inc. due to winter polar storm. In the first half, kuraray hiked the prices of EVOH throughout the region. Demand surged as the enquiries and competition among the spot buyers surged to procure the EVOH consignments for the food packaging and medical sector. The supply demand gap widened amid high demand and shortage of material in the North American region which led to multifold surge in the prices of EVOH during the first quarter.
Asia-Pacific (APAC)
The supplies of EVOH in Asia Pacific remained tight owing to the shortage of feedstock VAM throughout the region. During the Chinese Lunar New Year holidays, the inventory levels of EVOH diminished, followed by turnarounds in several upstream plants in the Northeast Asian region. It was observed that China's export volume of key feedstock VAM declined by 95% y-o-y to 1302 MT. Shortage of feedstock prompted key Asian producers to raise their EVOH offers. Japan's Kuraray hiked the prices of EVOH by USD 180 per ton for the domestic market and USD 200 per tonne for the overseas supplies within the APAC region. Demand surge from the downstream food packaging and medical sector. It was noted that several Indian buyers started to replenish their inventories in the second half of the quarter.
Europe
As major economies in Europe revoked the COVID restrictions by imposing lockdown, it limited the region’s production levels due to sluggish commercial and industrial activities. Reduced operations further led to tight supplies of EVOH in the European market during the first quarter. The import shipments from the USA declined amid bad weather conditions. Prices took a leap as limited to null availability hiked the desperation among the buyers to procure large volume ahead of further hike on the prices. Demand fundamentals were strong as offtakes from the downstream food and packaging sector were high.
For the Quarter Ending December 2020
North America
The North American EVOH supply was hampered during October by the seasonal storms and Hurricane Laura in the Gulf coast regions which affected the overall product availability across the region. Prices remained high supported by stable feedstock and uniform demand from the food packaging sector majorly in the US, one of the largest consumers of packaged food globally. Certain manufacturers remained under pressure due to limited stocks and healthy demand fundamentals across the region enabling them to focus on revamping the production levels.
Asia
EVOH market price in Southeast Asia rallied upwards keeping strong accord with the global price trend which mounted on the back of firming crude oil during first half of 4th quarter. While on the feedstock front, stability in the Ethylene Vinyl Acetate (EVA) supply was witnessed which helped in uplifting the total availability of product in the region. However, the projections remained high amidst uncertainty associated to the demand from downstream industries such as automotive, food and others. On the demand front, sentiments have been lit by the news of vaccine rollout and a sharp pickup in the manufacturing sector towards the year end. Some Indian consumers stated that shortage of import containers which started after mid-November exacerbated the overall market tightness. The average price of EVOH in the region were assessed to be around USD 7900 per MT.
Europe
The supply of EVOH remained affected due to plant turnarounds in some regions due to COVID-19 pandemic which capped the market supply across the region. Steady improvement in demand was seen during November as lockdowns were eased and operations resumed in several end-user industries. The demand curve took an uptrend towards the end of December after weeks of persistent dullness. Prices rose to fresh highs due to firming feedstock and supply tightness due to soaring container freight.
