For the Quarter Ending September 2024
North America
In Q3 2024, the Ethylene Vinyl Acetate (EVA) market in North America experienced divergent pricing behavior. Minimal fluctuations were observed throughout the first half of the quarter, influenced by stable demand from downstream industries such as packaging, solar, and footwear. Additionally, consistent cost support from upstream raw materials like Ethylene and Vinyl Acetate Monomer contributed to the stable pricing environment. However, concerns over weak consumer demand and competition from Asian manufacturers impacted overall market dynamics.
In the second half of the quarter, EVA prices in Mexico rose significantly due to increased import costs and production expenses faced by exporters. Although overall packaging demand remained weak, the sector experienced improved activity, driving higher inquiries and new orders. The Mexican government’s implementation of import tariffs on packaging products aimed to boost domestic competitiveness, contributing to an increase in demand for EVA. Consequently, North American demand was expected to rise, alleviating cost pressures from cheaper imports.
Despite the overall stable market, Mexico recorded a quarter-on-quarter price change of -2%, reflecting a slight decline. Notably, prices remained constant between the first and second halves of the quarter, indicating a steady pricing trend. The quarter-ending price for Ethylene Vinyl Acetate (EVA) 28% CFR Manzanillo in Mexico settled at USD 1,750/MT, aligning with the mixed pricing sentiment observed throughout the quarter.
APAC
The Q3 showed the fluctuating pricing pattern in the APAC region. In the first half of Q3 2024, prices of Ethylene Vinyl Acetate (EVA) in the Chinese market declined reflecting ongoing weak demand from the EVA terminal industry. EVA production slightly decreased to around 72%, easing supply pressure, but over 70% of domestic petrochemical plants maintained sufficient inventory, indicating limited demand improvement. Traditional downstream sectors, such as foam shoe materials and cables, were entering their off-season, providing minimal support for EVA prices. Additionally, average consumption of photovoltaic materials further hindered demand growth, resulting in sluggish market transactions.
In the second half of Q3 2024, Ethylene Vinyl Acetate (EVA) prices in the Chinese market rebounded due to supply stresses and rising upstream costs. Reduced production levels created supply pressure, while increasing ethylene prices provided crucial support for EVA prices. Although EVA production rates improved, traditional downstream sectors such as foam shoe materials and cables faced continued weak demand due to the off-season. The photovoltaic sector showed slight improvement, but overall demand remained subdued. Consequently, while market transactions for EVA were sluggish, a cautious procurement approach ahead of holidays contributed to the upward price movement.
The quarter saw a continued downward trend from the previous quarter, with a -9% decline in prices. However, there was a slight recovery noted in the second half of the quarter, with a 3% increase in prices.
The quarter-ending price of Ethylene Vinyl Acetate 28% EX Works Nanjing in China stood at USD 1130/MT, reflecting a challenging pricing environment with mixed pricing trend throughout the quarter.
Europe
In Q3 2024, the European Ethylene Vinyl Acetate (EVA) market exhibited a mixed pricing pattern. In the first half, prices declined, primarily due to weak demand from downstream industries such as packaging, footwear, and solar panel manufacturing. The packaging sector struggled with a lack of new orders amid sluggish economic growth and reduced consumer spending, while the solar industry faced challenges from an influx of cheaper imports from China, further worsening demand. Supply conditions remained moderate, with tight availability of upstream ethylene driven by low operating rates and sluggish imports from the U.S. and Asia. The ifo Business Climate Index indicated deteriorating economic sentiment in Germany, as nearly half of the manufacturers reported insufficient orders.
In the second half of Q3, EVA prices rose due to increasing pressures from upstream markets. Rising ethylene prices, fueled by tight supply and higher naphtha feedstock costs, drove up production expenses. Supply constraints worsened with reduced import offers and scheduled cracker maintenance anticipated to limit ethylene availability. Despite ongoing weak demand, particularly in the solar sector, the market sentiment shifted to bullish as manufacturers faced rising costs, highlighting a complex and challenging economic landscape for EVA producers in Europe.
Germany recorded a quarter-on-quarter price change of -3%, reflecting a slight decline. Notably, prices remained constant between the first and second halves of the quarter, indicating a steady pricing trend. The quarter-ending price for Ethylene Vinyl Acetate (EVA) 28% FOB Hamburg in Mexico settled at USD 1,730/MT, aligning with the mixed pricing sentiment observed throughout the quarter.
MEA
In Q3 2024, the Ethylene Vinyl Acetate (EVA) market in the MEA region experienced mixed price fluctuations. In the first half of the quarter, the EVA market faced a slight decline due to persistent weak consumer demand. Although EVA production rates decreased to around 60-65% of total capacity, alleviating supply pressure, high product inventories in both domestic and international markets hindered any improvement. Traditional downstream industries, such as foam shoe materials and cables, were entering the off-season, further dampening demand. Consequently, despite initial surges in orders for foamed shoe materials, sales quickly tapered off, resulting in sluggish market transactions.
In the second half of Q3 2024, the EVA market witnessed a period of increasing prices, driven by several significant factors. The quarter saw a notable rise in raw material costs, particularly for Vinyl Acetate Monomer (VAM), which directly impacted EVA pricing. Additionally, production levels of EVA equipment improved, easing some of the supply pressures in the market. However, the cost dynamics were mixed; while ethylene prices remained stable, vinyl acetate prices experienced fluctuations, providing limited support for EVA costs. On the demand side, the EVA industry faced challenges due to weak performance in end-use sectors, such as foam shoe materials and cables, which were also entering their off-season. This lackluster demand environment contributed to ongoing price pressures in the market.
Furthermore, the quarter-on-quarter change showed a decrease of 9%, highlighting a continued downward trend. The comparison between the first and second halves of the quarter revealed a minimal 1% price difference, showcasing relative stability in pricing dynamics. The quarter-ending price of USD 1,190/MT for Ethylene Vinyl Acetate 28% FOB Al Jubail in Saudi Arabia underscored the prevailing challenging market conditions and the overall volatile pricing environment in Q3 2024.
South America
In Q3 2024, the Ethylene Vinyl Acetate (EVA) pricing landscape in South America remained volatile. A consistent trend was reflected throughout the first half of the quarter. This pricing stability was primarily influenced by steady demand from downstream industries, including packaging and photovoltaic panel manufacturing, alongside moderate overall consumer demand. Despite a slight decline in the footwear sector, inquiries from packaging industries continued to increase, indicating a balanced market environment.
In the second half of the quarter, prices of Ethylene Vinyl Acetate (EVA) rose in the Brazilian domestic market due to escalating cost pressures. Exporters increased their quotations in response to rising manufacturing costs and improved demand from downstream sectors. Despite moderate overall demand, inquiries from the packaging sector surged, driven by the recovery of Latin American food exports. Additionally, stable upstream support from the Vinyl Acetate Monomer and Ethylene markets, along with geopolitical uncertainties affecting crude oil prices, further contributed to the upward price movement.
However, compared to the previous quarter, prices remained unchanged, showcasing resilience in the face of market fluctuations. The quarter-ending price of USD 1,840/MT for Ethylene Vinyl Acetate (EVA) 28% CFR Santos in Brazil signifies the varying pricing environment across the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the Ethylene Vinyl Acetate (EVA) market in North America experienced a pronounced decrease in prices, driven primarily by several key factors. The overarching dampening sentiment in the market was rooted in weak consumer demand and heightened competition from Chinese imports, particularly in the downstream solar encapsulation and footwear sectors. The influx of cheaper Chinese EVA alternatives forced prices down, often below production costs, exacerbating the difficulties faced by domestic manufacturers. Additionally, ample stockpiles of upstream ethylene provided little cost support, further contributing to the bearish trend.
Focusing on the USA, the EVA market witnessed significant price changes, illustrating a clear downward trajectory. The overall trend was characterized by moderate demand in the downstream packaging and solar industries, where American solar panel production struggled to meet domestic needs, leading to continued reliance on imports. Despite a modest 3% price increase from the previous quarter in 2024, the second half of the quarter saw a slight -2% decrease, reflecting persistent price pressures.
The seasonality factor, typically influencing demand cycles, was overshadowed by the broader market dynamics of oversupply and competitive pricing. The quarter ended with the price of Ethylene Vinyl Acetate (EVA) 28% DEL Houston at USD 1677/MT, signaling a negative pricing environment. The consistent decrease in prices suggests that the market remains under strain, with the overall sentiment being decidedly negative due to these compounding factors.
APAC
In Q2 2024, Ethylene Vinyl Acetate (EVA) pricing within the APAC region experienced a notable decline driven by multifaceted market dynamics. A primary factor contributing to the downward trend has been the persistent weakness in demand from downstream sectors such as footwear, packaging, and photovoltaic panels. Despite stable production levels at EVA terminal enterprises, the market has struggled with high inventory levels and cautious purchasing behavior from buyers. The oversupplied market conditions have led petrochemical plants to adjust their production capacities dynamically, further compounding the pricing pressures.
In South Korea, the region most affected by these changes, EVA prices reflected a stark downward trajectory. Seasonal factors added complexity, with traditional downstream industries entering their off-season, leading to fewer new orders and a more pronounced drop in demand. The correlation between supply adjustments and demand stagnation has been evident, exacerbated by weak support from primary raw materials like ethylene and vinyl acetate.
From the previous quarter in 2024, prices saw a slight increase of 2%, indicating a brief period of stabilization before further declines. Notably, the price comparison between the first and second half of this quarter revealed a 9% decrease, reflecting intensifying bearish market sentiments.
The latest quarter-ending price for Ethylene Vinyl Acetate (EVA) 28% FOB Seoul stands at USD 1300/MT. This persistent decline highlights a negative pricing environment driven by oversupply and weak downstream demand, leading to market instability and cautious trading behaviors across the region.
Europe
In Q2 2024, the Ethylene Vinyl Acetate (EVA) market in Europe experienced a pronounced downturn, driven primarily by weak consumer demand and intensifying competition from Chinese imports. Key factors contributing to the bearish trend included stabilizing energy prices and elevated inflation rates, which collectively diminished the appeal of residential solar installations—a significant downstream application for EVA. The influx of low-cost Chinese solar modules further exacerbated price declines, often undercutting European production costs and saturating the market with cheaper alternatives. Additionally, stable upstream Ethylene prices offered no mitigating support for EVA pricing, leading to a sustained downward trajectory.
Focusing on Germany, which witnessed the most substantial price fluctuations, the EVA market was marked by a consistent decline. Overall trends indicated a sluggish demand environment, heavily influenced by reduced solar encapsulation activities and a tepid response from other downstream sectors such as footwear and packaging. Seasonal factors appeared negligible against the overarching economic pressures. The percentage change with the previous quarter in 2024 showed a -7% decline, affirming the persistent negative sentiment. Furthermore, the price disparity between the first and second halves of the quarter, at -5%, underscored the continuous descent in market prices.
Concluding the quarter, the price of Ethylene Vinyl Acetate (EVA) 28% FOB Hamburg in Germany settled at USD 1800/MT, encapsulating the negative pricing environment that characterized the quarter.
MEA
The second quarter of 2024 has seen a significant downturn in the pricing of Ethylene Vinyl Acetate (EVA) within the Middle East and Africa (MEA) region, driven primarily by weak consumer demand and ample market supply. Several factors have contributed to this bearish sentiment. Firstly, the downstream industries, including footwear, packaging, and photovoltaic panels, have exhibited notable demand weakness. The slowdown in these sectors has impeded purchasing activities, leading to a buildup of inventories and a reluctance to stock up at high prices. Additionally, the raw material markets for ethylene and vinyl acetate monomer provided little support, resulting in a cost structure that failed to stabilize EVA prices.
In Saudi Arabia, the EVA market has been particularly impacted, reflecting the most significant price changes. Seasonality played a role, as traditional industries such as foam shoe materials and cables entered their off-season, further depressing demand. The trend has been a persistent decline, with the quarter a -1% decrease from the previous quarter of 2024.
A comparative analysis within the quarter reveals an 11% price drop between its first and second halves, underscoring the deepening negative sentiment. The latest quarter-ending price settled at USD 1180/MT for Ethylene Vinyl Acetate 28% FOB Al Jubail. Overall, the EVA pricing environment in Q2 2024 has been unequivocally negative, dominated by oversupply and tepid demand, leading to continuous price erosion.
South America
In Q2 2024, the South American region experienced a fluctuating trend in Ethylene Vinyl Acetate (EVA) prices. In April, prices in Brazil rose due to high-cost imports from the USA and increased production costs. Enhanced demand from downstream industries, especially packaging driven by the recovery of Latin American food exports, also contributed to the price increase. Despite some sectors like footwear experiencing a downturn, the overall market remained bullish. The Brazilian Real's 2.70% depreciation against the USD further influenced price hikes.
Moving into May, EVA prices in Brazil declined due to weak consumer demand and soft import prices. Downstream industries saw moderate demand overall, with a notable decline in the footwear sector's exports amid global market instability and competition from China. Although the packaging industry continued to see increased inquiries, the solar encapsulation manufacturing industry faced challenges from cheaper Chinese imports, resulting in scaled-back expansion plans and weak sales of domestically produced encapsulations.
Towards the end of the quarter, prices in June stabilized due to unchanged market fundamentals. Demand from downstream industries remained moderate, with a slight decrease in the footwear sector. However, the packaging industry showed improvement in inquiries. The solar encapsulation manufacturing sector continued to face challenges from cheaper Chinese imports, leading to scaled-back expansion plans and sluggish sales. Despite these challenges, the exponential growth in solar energy highlighted the increasing popularity of photovoltaic technology in Brazil, suggesting future demand for EVA in solar encapsulation. Trade activities remained normal, although freight charges continued to be high.
The 1% increase from the previous quarter was insufficient to reverse the overall negative sentiment. The quarter concluded with EVA 28% CFR Santos in Brazil priced at USD 1870/MT, reflecting the prevailing hybrid pricing environment in the region.
For the Quarter Ending March 2024
North America
In Q1 2024, the Ethylene Vinyl Acetate (EVA) market in North America experienced a mixed pricing environment. Overall, the market sentiment was bearish, with prices showing a slight decline compared to the previous quarter. The decline in prices can be attributed to weak demand from downstream industries and surplus material availability. Consumer markets such as China, Singapore, and India showed reluctance to purchase, contributing to the weak market sentiment. Geopolitical tensions and supply chain disruptions also added to the uncertainty in the market.
In the USA, the pricing situation for EVA was also bearish. Prices dropped in February and March due to increased competition from Chinese manufacturers and decreased demand from downstream industries. However, increased slightly in January due to improved demand from the footwear, packaging, and photovoltaic panels manufacturing industries.
Overall, the market saw moderate supply levels, with manufacturing firms operating at a slower pace. The manufacturing PMI indicated a contraction in output and a decline in new orders, reflecting weakened domestic and international demand. The availability of EVA in the domestic market was sufficient to meet the present demand. Looking at the price trends, however, there was a slight rebound in prices from the previous quarter. The quarter-ending price of Ethylene Vinyl Acetate (EVA) 28% DEL Houston in the USA was USD 1670/MT.APAC
The first quarter of 2024 has seen a significant decrease in prices for Ethylene Vinyl Acetate (EVA) in the APAC region. Several factors have influenced this downward trend, including weak demand from downstream industries, such as adhesives and coatings, and low consumer consumption. Additionally, the Lunar New Year holidays in China and other Asian countries have led to reduced trade volumes and sluggish market activities.
In February, Following the Lunar New Year and Lantern Festival holidays, the overall market performance was sluggish, with poor operating fundamentals persisting. Demand recovery from downstream markets was slow, and there was no notable improvement in new orders post-holidays. On the supply side, sellers had secured enough materials to meet consumer needs during the holidays, while only a few manufacturers were operational during this period.
South Korea, in particular, has experienced the maximum price changes during this quarter. Overall, the pricing environment for EVA in the region has been negative, with a decrease of 26% compared to the same quarter last year. Additionally, there has been a 7% decrease in prices compared to the previous quarter in 2024. To conclude, the latest quarter-ending price for Ethylene Vinyl Acetate (EVA) 28% FOB Seoul in South Korea was USD 1490/MT.
Europe
The first quarter of 2024 has been challenging for the Ethylene Vinyl Acetate (EVA) market in Europe, with prices experiencing significant fluctuations. Several factors have influenced market prices during this period. One of the main drivers has been the influx of Chinese-produced solar panels, which has led to heightened competition and forced US and Europe-based firms to sell their products at lower prices. This increased competition has resulted in decreased demand from downstream industries such as footwear, packaging, and photovoltaic panel manufacturing. Additionally, manufacturers have faced shrinking profit margins.
In Belgium, prices of EVA have dropped further due to weak demand conditions and decreased consumer purchasing. The demand from neighboring European markets has also declined. The cost support from upstream raw materials, such as Vinyl Acetate Monomer (VAM) and Acetic Acid, has remained stable. Overall, market transactions and procurement activities have been limited.
Looking at the price trends, the first quarter of 2024 has seen a bearish market sentiment. Prices have decreased compared to the previous quarter, with a moderate decline in supply and low demand from downstream industries. The latest quarter-ending price for EVA 28% FOB Antwerp in Belgium is USD 1850/MT.
MEA
In the first quarter of 2024, the prices of Ethylene Vinyl Acetate (EVA) in the MEA region experienced a significant decrease. This downward trend can be attributed to several factors that influenced market prices. Weak demand from the downstream industries, such as packaging and adhesives, played a major role in the price decline. The inquiries from these industries were low, and destocking practices in the early Q1 have further contributed to the decrease in prices. Additionally, the growth in new orders from the overseas market was poor, reflecting weak consumption.
Focusing specifically on Saudi Arabia, which saw the maximum price changes in the region, the overall trend for EVA prices remained negative. The prices in Q1 2024 were 36% lower compared to the same quarter last year, indicating a significant decrease in market prices. Furthermore, there was a 5% decrease in prices from the previous quarter in 2024, reflecting the continued downward trend. When comparing the first and second half of the quarter, there was a 12% decrease in prices. This suggests that the price decline was more pronounced in the later part of the quarter.
To conclude, the pricing environment for Ethylene Vinyl Acetate in Q1 2024 has been consistently negative, with prices experiencing a significant decrease. The quarter-ending price for EVA 28% FOB Al Jubail in Saudi Arabia was recorded at USD 1420/MT.
For the Quarter Ending December 2023
North America
In the North American region, the Ethylene Vinyl Acetate (EVA) market in the fourth quarter of 2023 was influenced by several key factors. Primarily, the market experienced a bearish sentiment due to weak demand from downstream industries such as packaging, adhesives, and moldings. This resulted in a decrease in prices as market participants focused on destocking supplies and avoiding holding up inventories.
The prices dropped further in the US market due to the weak demand from downstream industries and sufficient material availability in the domestic market. The cost support from the upstream Vinyl Acetate Monomer declined, resulting in low production costs. However, the overall market outlook remained stable, and consumer inquiries were slightly slow down during this period. In terms of price trends, there was a 2.7% decrease in prices compared to the previous quarter.
However, there was no significant change in prices compared to the same quarter of the previous year. The price of Ethylene Vinyl Acetate (EVA) 28% DEL Houston in the USA for the current quarter is USD 1550/MT. Overall, the North American Ethylene Vinyl Acetate (EVA) market in the fourth quarter of 2023 was characterized by weak demand, sufficient material availability, and stable market conditions.
Asia
The Ethylene Vinyl Acetate (EVA) market in the Asia Pacific (APAC) region during the fourth quarter of 2023 witnessed stable market sentiments. Slow demand from downstream industries and sufficient material availability in the domestic market were the major factors that subdued market growth. The manufacturing plants were operating at moderate to high supply levels, and the demand from downstream industries like coatings and adhesives remained weak. In South Korea, the market situation was bearish, and the demand was low, leading to a price decline of 1.3% in the first week of December. The trend analysis suggested a negative correlation (-11%) between the current and previous quarters, while the price comparison between the first and second half of the quarter showed a -1% decline. Moreover, the year-on-year comparison indicated a significant decline of 42%. Additionally, no major plant shutdowns were reported during the quarter. The latest quarter-ending price of Ethylene Vinyl Acetate (EVA) 28% FOB Seoul in South Korea was USD 1460/MT. Overall, the market in the APAC region remained stable during the fourth quarter of 2023, with limited market transactions and no significant supply-related issues.
Europe
The market for Ethylene Vinyl Acetate (EVA) in Europe during the fourth quarter of 2023 faced several challenges. Weak demand from downstream industries, such as adhesives and coatings, resulted in low consumption and a decline in prices. The sluggish business conditions, as reflected by the HCOB Eurozone Manufacturing PMI, further compounded the market's downturn. Additionally, the European chemicals market experienced a decline due to low demand and rising energy prices. One specific country that experienced significant changes in EVA prices during this quarter was Belgium. The domestic market in Belgium witnessed further price drops due to weak demand conditions and poor domestic consumption. The inquiries from downstream industries remained low, and there was a decrease in demand from neighboring countries in Europe. These factors led to a bearish market situation in Belgium. In terms of pricing trends, the price of EVA in Belgium decreased by 15% compared to the previous quarter. The price of EVA in Belgium at the end of the quarter was USD 1970/MT 28% FOB Antwerp. Overall, the weak demand from downstream industries, low-cost support from upstream raw materials, and limited inventories in the region contributed to the bearish market conditions for EVA in Europe during the fourth quarter of 2023.
Middle East Asia
The Q4 2023 for Ethylene Vinyl Acetate (EVA) in the Middle East Asian region witnessed a bearish market sentiment with moderate demand from the downstream industry. The production plants were operating at a stable rate with steady material availability in the domestic market. The decline in crude oil prices led to a decrease in production costs, which further impacted the prices. The demand from the downstream photovoltaic sector remained weak in Saudi Arabia, leading to a decline in prices. The market transactions were average, and supply chain operations were regular. During the initial week of October, the prices of Ethylene Vinyl Acetate in the Saudi Arabian domestic market witnessed a decline, primarily due to subdued demand from downstream industries. In the Asian market, particularly in China, consumer inquiries from the downstream adhesives and coatings industry weakened, influenced by the mid-autumn holidays. The trend, seasonality, and correlation price percentage for Saudi Arabia in Q4 2023 were declining. The percentage change in prices from the previous quarter was -9%, and the price percentage comparison of the first and second half of the quarter was -1%. The percentage change in last year's same quarter price was -58%. The latest price of Ethylene Vinyl Acetate 28% FOB Al Jubail in Saudi Arabia for Q4 2023 was USD 1370/MT.
For the Quarter Ending September 2023
North America
The Ethylene Vinyl Acetate prices have consistently declined in the current quarter, with a further decrease observed in the US domestic market in September. This decline is attributed to weak demand from downstream industries such as packaging, adhesives, and moldings. Additionally, the PMI value for this quarter has consistently been below 50, indicating a contraction in the manufacturing sector. Furthermore, stable natural gas prices throughout the quarter have resulted in weak cost support from the production front. Overall, there is a slight hesitancy in the consumer market toward new purchases, leading to weakened market sentiments for the product. Looking ahead to the upcoming quarter in 2023, it is anticipated that the expected increase will influence the prices of Ethylene Vinyl Acetate in feedstock VAM. Furthermore, demand from the international market is expected to increase especially from the Asian market, as the arrival of the festival season will likely increase stocking activity. Moreover, the prices of natural gas are expected to be on the higher side, contributing to elevated production costs.
Asia
The prices of Ethylene Vinyl Acetate exhibited a first-half increase followed by a decrease in the second half of Q3. The initial rise was attributed to an upswing in Feedstock Acetic Acid prices. Moreover, the PMI value for the Chinese market in the last month of the quarter stood above 50, signifying expansion in manufacturing activity and potentially influencing pricing dynamics. The surge in prices can be linked to the Gloden week in China, stimulating heightened trading activity in the market. However, stability in coal prices in China during this quarter weakened cost support from the production front. The subsequent decline in prices can be attributed to weakened demand from downstream industries. Anticipations suggest that in the near future, the prices of Ethylene Vinyl Acetate in the Chinese market are expected to rise, driven by the arrival of the festival season and the anticipated increase in trading activity in the market and furthermore, demand from the international market is expected to increase especially from the Indian market.
Europe
During the third quarter, Ethylene Vinyl Acetate prices in the German market followed a downward trend. This can be attributed to a decrease in the price of imports, especially from the Chinese market, resulting in a more competitive pricing landscape. Additionally, the PMI in Germany consistently remained below 50 throughout Q3, indicating a contraction in the manufacturing sector. Furthermore, the price of VAM did not witness a significant increase in this quarter, contributing to sluggish growth in the EVA market. The decline in prices is further associated with weak demand from downstream industries such as packaging, adhesives, and moldings. There was hesitance in the market to procure new orders. Moreover, stable natural gas prices added to the lack of robust cost support. Looking ahead, an increase in prices is anticipated in the coming months, driven by the rising value of imports. However, a substantial upturn in demand from the downstream industry is not expected in the upcoming months. Furthermore, the Feedstock VAM is expected to increase.
For the Quarter Ending June 2023
North America
The price of EVA has decrement in the US market this was due to low demand from the downstream industry. Furthermore, feedstock VAM prices decremented explaining drop in prices of VAM. Additionally, there was adequate inventory level in the market to meet the demand from the downstream industry. Furthermore, Natural Gas prices decrement which led to decrement in input production cost. In addition, the plants were operating at stable rates which led to adequate inventories level in the market to meet downstream demand. Additionally, the demand from the international market has declined specially from China due to deflation problem and slowdown of manufacturing sector. Additionally, there was constant hike in the interest rate throughout Q2 which led to economic uncertainty which created overall pessimistic market view. Furthermore, high inventory level in the domestic market bounded seller to offer discount to increase market transaction. Moreover, due to constant declining prices there was negative market sentiments, so procurement of new orders was on need-on-demand basis.
Asia
The prices of EVA in the Chinese market have shown a bearish market trend due to weak demand from the downstream industry, like photovoltaic and foaming. Feedstock Vinyl Acetate prices declined throughout Q2, explaining the drop in prices. Additionally, there was an adequate inventory level in the market to meet the demand from downstream industries like automobiles. Furthermore, the plants were operating at lower rates due to weak downstream demand. Additionally, there was an adequate supply of inventories in the market, with sellers offering discounts to increase market transactions traders were willing to give up profit to increase market transactions. Furthermore, demand for photovoltaic and foaming material has decreased, with demand from the foaming sector particularly low. Furthermore, there was a decrement in the input production cost as Coal prices were offered at discounted prices. Moreover, demand from the international market has declined, which created an overall pessimistic market view. Thus, as of Q2’s ending, the prices of EVA were stated at USD 1862/MT 28% FOB Tianjin.
Europe
The EVA prices in the European market have declined slightly as of Q2, and it was due to weak demand from the downstream automobile industry. Furthermore, there was a decrement in demand from the international market due to a weak global economic outlook and economic uncertainty. Moreover, demand from the downstream industries like photovoltaic was stable but weak, which subdued market growth. Additionally, the plants were operating at lower rates due to weak demand from the downstream industry. Due to constant declining prices, there were negative market sentiments in the market which led to low procurement activities in the market. Furthermore, the procurement of new orders was on need on-demand basis. The PMI value for Europe remained below 50 throughout Q2, indicating a drop in the manufacturing sector throughout Q2. The PMI value for June dropped to its lowest value of 42.70, indicating further contraction in the manufacturing sector. Thus, as of June, the prices of Ethylene Vinyl Acetate were stated at USD 2700/MT FOB Hamburg.
MEA
In the Saudi market, the prices of Ethylene Vinyl Acetate have declined significantly. This was due to a weakening in the feedstock VAM prices. Furthermore, there has been a decline in crude oil prices, which led to a decrement in input production costs. In addition, the demand from the international market, especially from China, on account of the deflation problem and slow economic recovery in China. Furthermore, due to a significant decline in prices, there were negative market sentiments, and procurement of new orders was on need on-demand basis. In addition, the plants were operating at slower rates due to weak demand from the domestic market, which led to ample inventories level in the market and bounded sellers to offer discounts. Furthermore, demand from the downstream Coating industry has declined. In addition, there was hesitance in the market due to constant declining prices to procure large orders. Thus, as of June, the prices of Ethylene Vinyl Acetate were stated at USD 1312/MT FOB AI Jubail.
For the Quarter Ending March 2023
North America
Prices of feedstock Vinyl Acetate Monomer fell mostly because of depleting Acetic Acid feedstock costs and stabilizing energy prices in the US market. Prices for imported Vinyl Acetate Monomer have remained substantially less expensive than those for domestic sources. Production rates remained low because of consistent consumption rates on the domestic market. Production costs were constant despite dropping natural gas prices, and this led to consistently falling EVA prices. The volume of imports from the Asia-Pacific area has increased as freight prices have reduced. The current winter saw a decline in demand for construction in the USA, which affected downstream sectors like paints and coatings, adhesives, and polymers.
Asia
Despite the fall in container rates, the declining trend of Asian shipments during Q1, 2023 was visible in various countries, including China and Southeast Asia. Additionally, the shipping market remained weak because of global inflation and restrained demand for EVA from downstream, as padding in sports-based equipment contributed to a large decline in freight prices. The market value of Ethylene Vinyl Acetate was hovering at USD 2424/ton, 28% FOB Tianjin during February in China. The demand for EVA declined due to lower procurement of the product, and this led to elevating inventories and a rise in the stock of raw material VAM with the traders and suppliers.
Europe
The market value of Ethylene Vinyl Acetate plummeted in the European market during Q1, 2023, with prices ranging at USD 2930/ton, 28% FOB Hamburg. The freight charges from Europe to China/ East Asia declined in an overall outlook which relieved the pressure from the prices of the product. The Producer Price Index for manufacturing in the European Union also depleted compared to the previous month. European markets close lower, especially in Germany, as inflation accelerated in the region, impacting the market sentiments of the Polymer & Resin-based industry. The domestic economy is slowing this year, which affects German road transport, while foreign trade drives truck transport. German market bemoans rail freight amidst easing energy in the region, although the Baltic freight index is running at low rates.
For the Quarter Ending December 2022
North America
The Ethylene Vinyl Acetate (EVA) price trend showcased stable sentiments during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. However, the product price trend improved during the mid-quarter due to a rise in production costs amid high feedstock Ethylene demand from Polyethylene producers. On the contrary, a continuous decrease in feedstock Vinyl acetate prices due to weak upstream prices was further reduced, which reduced the cost pressure. Then in the final month of Q4, EVA prices maintained stability on the back of stable demand and consumption rates and moderate availability of supplies in the market.
Asia
EVA prices decreased consistently during quarter IV of 2022 amid stable to low demand sentiments. For an initial couple of weeks, prices were firm and rose marginally due to limited feedstock supplies. After that prices started to decrease and fell till the end of the quarter. In the mid-quarter, EVA prices declined amid improved feedstock availability after the restart of feedstock Ethylene plants, including Idemitsu Kosan, with a capacity of 6,90,000/MT, production improved, and the cost of EVA decreased. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
In the European region, EVA prices oscillated during Q4. Initially, the product prices decreased amid the decline in end-user consumption rates and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of EVA. However, during the mid-quarter, prices inclined upward, and production was hampered due to the production cut of feedstock and the increase in the input prices. Towards the end of the quarter, EVA prices plunged noticeably on the back of weak offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs.
For the Quarter Ending September 2022
North America
EVA prices fall consistently during Q3 of 2022 in North America, more significantly in H2 of the quarter. During the first month of the quarter, prices decreased marginally due to firm feedstock prices and stable production costs, while the demand was moderate from the end-user sector. However, from the mid of third quarter, the feedstock Ethylene and Vinyl Acetate prices plunged significantly because of an increase in their inventory levels and a decline in the offtakes by downstream industries. It reduced the fixed costs on the production values. Subsequently, after witnessing a plunge in the previous quarter's prices, Ethylene Oxide in the USA settled at USD 2873/MT.
Asia
The prices of EVA decreased consistently in the Asian region during Q3 of 2022. The upstream cost pressure decreased on the product values due to the consistent decrease in feedstock Ethylene prices. Simultaneously, Vinyl Acetate prices also fell more significantly in the H2 of the quarter on the back of weak demand sentiments by the downstream processors. Additionally, the depreciation in the currency values of major producers like China due to the economic slowdown amid frequent lockdowns negatively impacted the product's prices. At the end of the quarter, Ethylene Vinyl Acetate China's discussions settled at USD 3115/MT, after an average decrease of 7% in the previous quarter's prices.
Europe
In Europe, EVA prices decreased throughout the third quarter of 2022. A consistent reduction in feedstock Ethylene prices due to reduced offtakes from downstream industries and a simultaneous plunge in vinyl acetate prices reduced upstream cost pressure and declined production costs. At the same time, the weak demand for EVA and no significant offtakes by downstream buyers amid high inflation resulted in increased inventory levels despite production curtailment due to tight input supplies from the exporters. After witnessing substantial reductions in the previous quarter's prices, Ethylene Vinyl Acetate discussions in Germany settled at USD 3398 USD/MT at the end of Q3, 2022.
For the Quarter Ending June 2022
North America
Ethylene Vinyl Acetate (EVA) prices in the American market increased throughout the second quarter of 2022. The Increasing costs of upstream products Ethylene and Vinyl Acetate Monomer (VAM) due to high feedstock natural gas export rates to Europe and high demand from the downstream textile industry, respectively, assisted the rising price trend of EVA in the US. During the end of Q2 2022, major manufacturers of upstream VAM and feedstock Acetic acid like Celanese and INEOS issued Force Majeure worsening the supply condition and increasing the EVA prices in the US. Strong demand from the packaging sector further aided the price hike of EVA in America.
APAC
In the Indian market, the Ethylene Vinyl Acetate (EVA) price remained stable and had minimal fluctuation during the second quarter of 2022. The price rose slightly at the end of Q2 2022 due to supply disruptions from South Korea, owing to the trucker's strike. In China, the prices of EVA dropped throughout the second quarter of 2022. The restrictions placed on the Chinese market during Q2 2022 to curb the covid resurgence reduced the demand for downstream industries like packaging and building in the domestic market. The steady supply of feedstock Natural gas from Russia further eased the price of EVA in China.
Europe
The prices of Ethylene Vinyl Acetate (EVA) in the European market increased throughout the second quarter of 2022. Due to the energy crisis, the supply of upstream Vinyl Acetate Monomer (VAM) and Ethylene were disrupted and raised the price of EVA during Q2 2022. The market cost of EVA further increased on the back of high feedstock Natural gas prices due to the sanctions against the imports of Russian oil and gas by several European countries. The supply of upstream VAM was limited in the market because of Force Majeure issued by a significant manufacturer like Lyondell, which assisted in the price hike of EVA during Q2 2022 in the European market.
For the Quarter Ending March 2022
North America
The price rise of Vinyl Acetate Ethylene redispersible powder abetted by government infrastructure development proposed during the fourth quarter of 2021 elevated the demand of construction products like Vinyl Acetate Ethylene redispersible powder during the Q1 of 2022 in the American market. The upstream Ethylene price in the American market was peaking till January and prices started to drop owing to ease in refinery margins stabilized demand and continued supply chain disruptions throughout the quarter, albeit with improved rail car availability, despite the decrease in upstream price during the first quarter of 2022 in the American market the price of Vinyl Acetate Ethylene redispersible powder price was rising on the back of strong sentiments from the downstream construction sector during Q1 of 2022. As per ChemAnalyst data, VAE RD assessed around USD 2950/MT during March 2022.
Asia Pacific
The Prices of Vinyl Acetate Ethylene redispersible powder in the Asian market was mirroring the upstream Ethylene market and was rising throughout the first quarter of 2022. In China despite the dull demand from the downstream construction sector owing to the winter Olympics held in Beijing, the upstream ethylene market was strong enough to keep the Vinyl Acetate Ethylene redispersible powder price from dropping in the first quarter of 2022. In the Indian Market, the prices of Vinyl Acetate Ethylene redispersible powder price was increasing on the back of strong market sentiments for the downstream construction materials during Q1 of 2022. VAE RD prices hovered around USD 3040/MT in India during March 2022.
Europe
In the European market the prices of Vinyl Acetate Ethylene redispersible powder were soaring due to high upstream Ethylene prices on the account of sky-rocketing feedstock natural gas price because of sanctions on imports of Russian gas and oil by various European countries as a sign of opposition of Russia's invasion of Ukraine. The home improvement sector in Europe during Q1 of 2022 was performing well where of Vinyl Acetate Ethylene redispersible is widely used in construction materials, due to high demand from end user abetting the upward trend of Vinyl Acetate Ethylene redispersible powder prices during Q1 of 2022. VAE in Europe price hovered around USD 3420/Mt during March 2022.
For the Quarter Ending March 2022
North America
North America saw an increase in Ethylene Vinyl Acetate (EVA) price during Q1 2022 and was observed to be around USD 2793/ton FOB Texas in the first quarter. The Ethylene Vinyl Acetate market in the USA witnessed an overall increase in demand during the quarter ending March. Higher freight cost during the initial phase, and surging demand from domestic and overseas markets led to increased prices. The prices of ethylene in the US rose sharply during the first quarter of 2022 due to Russia-Ukraine war, which surged the prices of Ethylene Vinyl Acetate.
Asia
In Asia, the prices of Ethylene Vinyl Acetate (EVA) were witnessed to be fluctuating in the first quarter of 2022 in India and China. In contrast, in South Korea and Thailand, the prices were increasingly taking pressure from domestic raw material costs amid stable to solid demand from the domestic market and variation in the price of ethylene and vinyl acetate, thus increasing prices. The price began at USD 2310/ton EVA 18% Fob Bangkok in Thailand. In February, the Chinese EVA market faced supply tightness as raw material supplies were hard to source for the manufacturers due to the Chinese government’s winter air pollution control regulations that mandate production cuts for refineries and manufacturing units during the peak winter season.
Europe
Europe saw an increase in Ethylene Vinyl Acetate (EVA) price in the first quarter of 2022, where the price went up to USD 5520/ton EVA 28% FD Hamburg by the end of March. The European bloc experienced some supply-side tightness due to lowered imports from Korea and increased natural gas prices in the region due to the ongoing war between Russia and Ukraine. Sturdy demand from downstream sectors for boots, gloves, fishing rods, etc., in Europe, led to increasing prices of Ethylene Vinyl Acetate. In addition, the constant rise in the freight charges and unavailability of an adequate number of shipping containers also contributed to marking a significant increase in the values of Ethyl Vinyl Acetate.
For the Quarter Ending December 2021
North America
The US Ethylene Vinyl Acetate market had seen an overall reduction in demand during the quarter ending December as exports had been owing higher cost of freight during the initial phase and a general slump in demand from both domestic and overseas markets ahead of the holiday season. Exports into Chinese market were hard to flow in as there was congestion at major container terminals which persists till date. Mexico and Brazil too had seen a fall in demand for the US EVA ahead of the holiday season. The prices of ethylene in the US had risen sharply during the period mid-September to November. However, the effect of the narrowing in EVA to Ethylene spread had no effect on the prices of EVA during the month of December as export demand stagnated.
The EVA market is set to see shoots of recovery in the new year as demand usually improves in the post-holiday period and the prices of Ethylene during the first week of January had seen a significant increase of USD 75-90/MT. The spot offers for Vinyl Acetate Monomer too had seen a significant increase.
Asia
EVA market in Northeast Asia had sustained the rise in prices during September of Q3 through into October as prices had remained at the USD 4400/MT as of mid-October for the EVA (28%-33%) assessed on an Ex-Works basis. Demand from the photovoltaic cells industry had kept the prices afloat during the month of October. However, the prices of started to fall by the last week of October and by mid-November the average price of EVA (28%-33%) was at USD 3520/MT which was a 20% depreciation. The fall in prices continued in the month of December as end user market did not offer much of a scope. The prices however are expected to improve in the month of January from a combined effect of production cuts in exporting countries like Korea and Chinese Taipei as well as an increase in demand from Asia.
India’s scenario was not different with demand tapering off by the closing week of October and continuing to fall till the close of December. The prices for Q4 were on an average much higher than the Q3 prices for both EVA 18% and 28% grades assessed on an Ex-Delhi NCR basis. In India too the prices for EVA are set to rebound in the new year as imports from Korea are expected to be tight until the end of February as per information from manufacturers in Korea as well as traders in India. The contract offers for January have significantly improved over December levels.
Europe
The European bloc experienced some supply side tightness due to lowered imports from Korea as well as increased natural gas prices in the month of December. The Nord stream pipeline flow rates have been lowered by Russia citing extreme freezing weather conditions and chances of clogging. The prices were on an average lower in Q4 compared to Q3. The demand from the end user Phot voltaic encapsulation industry usually goes down in Northwest Europe during the winter times, thus demand for EVA (28%-33%) was lower overall during Q4.
The outlook for Q1 of FY22 remains mixed with demand likely to stagnate during the month of January until mid-February. But the month of March could see demand picking up and the prices in general are likely to be higher than the Q4 of FY21 prices.
For the Quarter Ending September 2021
North America
In Q3 2021, hike in the prices of EVA was observed in North America backed by the spike in the prices of raw materials and squeezed availability of the product. In addition, curtailment in the production rates due to the impact of severe climate calamity in this quarter also contributed to the snug supply of Ethylene Vinyl Acetate in the regional market which consequently led to the rise in the values of the product. However, firm demand for EVA from the downstream sectors including adhesives, photo-voltaic encapsulations, films, and others kept the market dynamics firm in this quarter.
Asia
In Asia, Ethyl Vinyl Acetate (EVA) prices witnessed a buoyant rise following Acetic Acid values across the region in the third quarter of 2021. Moreover, limited supply amidst its firm demand also contributed to the inflation in the prices of EVA in this timeframe. In India, EVA prices soared throughout the quarter backed by the constraint availability and several other factors such as congestion at few ports of China, indefinite plant turnarounds in the USA and prolonged container shortage. Furthermore, constantly spiraling freight cost also sent ripples to the prices of EVA in India. Therefore, 25% Ethylene Vinyl Acetate EX-Depot Delhi-NCR prices settled at USD 3119.02/MT in September showcasing an increment by USD 391.36/MT since July.
Europe
In Q3 2021, EVA prices kept tracing an upward trajectory due to the sturdy demand from downstream sectors in Europe. Moreover, spike in the values of Acetic Acid and high production cost also led to the rise in the prices of EVA in the quarter ending September. Besides, delayed imports from the US due to the impact of Ida hurricane led to the scarcity of feedstock Ethylene and VAM that further aided the inflation in its prices in this timeframe. In addition, constant rise in the freight charges and unavailability of adequate number of shipping containers also contributed to mark a significant rise in the values of Ethyl Vinyl Acetate.
For the Quarter Ending June 2021
North America
North American market experienced huge spike in prices of Ethyl Vinyl Acetate (EVA) during this quarter backed by firm demand from downstream sector amidst halted supply activities in USA. Post freezing disruption, supply activities of petrochemicals from the Gulf of USA improved month over month in comparison to previous quarter, but the supply for feedstock products remained inadequate to satisfy the overall demand. Prices of feedstock chemicals including VAM (Vinyl Acetate Monomer), and Ethylene remained high during this quarter, due to firm demand from downstream sectors and inadequate supply. This shortage led to steep rise in prices of EVA in North American region during Q2 2021.
Asia
Ethyl Vinyl Acetate (EVA) prices varied country over country in the Asian market due to several domestic and global factors during Q2 2021. In China, consistent increment in prices was observed during this quarter, backed by firm offtakes from photo voltaic cell manufacturers in solar power sector and adhesives in the country. However, other factors like container shortages, and rising freight cost, further increased the prices of country’s exported cargoes. While in India, prices of EVA fluctuated with uncertain demand from downstream sectors, in effect of another surge of pandemic in the country. Therefore, the price of 28% EVA hovered around USD 1904/MT and USD 2218/MT for China and India respectively during the first week of June.
Europe
Europe witnessed huge rise in prices of EVA during this quarter, supported by prolonged supply deficit of feedstock VAM and Ethylene from USA. Prices of feedstock Ethylene and VAM also rose in the meantime, due to critical shortage and firm demand from their respective downstream segments. However, demand for EVA in Europe remained strong throughout the quarter, supported by firm offtakes from adhesives and paint manufacturers.
For the Quarter Ending March 2021
North America
Production of EVA in the US remained shallow due to the freezing winter storm, that disrupted various production activities around the US Gulf. Several manufacturers were forced to shut down their plants until the weather improves, e.g., Celanese was compelled to declare a force majeure upon its EVA plant based in Texas. In addition, feedstock Vinyl Acetate monomer (VAM) FOB US prices showcased consistent uptick in US during February and fluctuated between USD 1425-1460 per MT which led to the rise in prices of EVA in US and global market during the quarter.
Asia
In the Asian market, EVA prices remained firm weighed by the limited availability of upstream Acetic Acid and feedstock Ethylene & Vinyl Acetate Monomer (VAM). Prices of all the upstream and feedstocks remained high due to the global shortage as a repercussion of the US winter storm. In the Asian market, due to high VAM prices traders restrained to purchase EVA which created a domestic shortage across the region, leading to another rise in EVA prices in the domestic market. Acetic Acid prices remained highly bullish and rose by more than 44% across the quarter in Asia. In the Indian market, prices of 28% EVA rose by 3.24% and settled at USD 1779.75 per MT.
Europe
European EVA, VAM and Acetic Acid manufacturers were opportune to take over the market, when the US manufacturing capability reduced due to the winter storm. Bullish buying sentiments across Asia amidst the US freeze crisis skyrocketed the import demand and its prices, although the overall output remained insufficient to satisfy the demand. This bullish nature is expected to come down in the forthcoming quarter, as most of the plants across the US have come onstream.
For the Quarter Ending September 2020
North America
Regional Ethylene Vinyl Acetate supply was affected by the production outages announced by the key market players entering the third quarter, which are expected to show their effect in supplies in fourth quarter as well. Logistics challenges faced due to seasonal storms and Hurricane Laura in the Gulf coast regions restricted the overall product supply.
Asia
Asia’s ethylene vinyl acetate market is bracing the tightened product supply because of the restricted output combined with steady & lull demand. Supply disruptions in China due to maintenance turnaround at Yanshan Petrochemical’s plant till end-July tightened the product availability backed by production outages at BASF-YPC’s plant. Due to weak supply and firm on-spot demand prices of 14-20% VA-content EVA rose to USD 1100-1150/tonne CFR SE (southeast) Asia in July. Buoyant demand from the end users like adhesive producers and photovoltaic helped in maintaining market optimism. On the feedstock front, stable Ethylene import prices helped in uplifting the producer’s margins.
Europe
EVA availability turned lower in the third quarter of 2020, not only due to plant shutdowns in various regions in Texas and Germany but also because of the outages heard outside Europe. The third quarter saw the significant rise in the demand of EVA which is correlated with sturdy consumption in the paints and coatings sectors. The demand uptick was strongly by active restocking ahead of the year-end and Christmas holidays.
