SunSirs: Supply and Demand Deadlocked, China EVA Market was in Consolidation

Last week, the domestic EVA market situation was sorted out and operated, with spot prices stabilizing slightly. According to the Commodity Market Analysis System of SunSirs, as of December 22, the benchmark price of EVA in China was 11,433.33 RMB/ton, a decrease of 6.54% from the beginning of the month.

The domestic EVA market is experiencing a price stalemate this week. On the supply side, the load level of domestic EVA enterprises continues to rise. The weekly industry operating rate is about 90%, and the weekly production has increased synchronously, while the market supply remains abundant. The maintenance plan for future equipment is insufficient, and the mentality of petrochemical plants is weak. The overall inventory position of EVA is on the rise, and merchants tend to offer at a discounted price. Recently, EVA suppliers have shown poor support for spot goods. Upstream ethylene levels out, while vinyl acetate tends to be stronger, providing decent cost support for EVA.

Last week, the demand side performance of EVA continued to be weak. The new quarter orders for foam shoe materials in the early stage have played a role in driving investment, and the purchasing level of photovoltaic enterprises is lower than expected. On exchange trading is concentrated on low-end offers, and the logic of buyers buying on dips remains unchanged. Lack of market buying sentiment and resistance to the return of high priced goods. The overall stocking operation on the market places orders as needed, and the acceptance of high priced goods by enterprises is average. Prices are deadlocked due to market pull from different directions.

Overall, EVA prices remained stagnant last week. The raw material market provides moderate support for EVA spot prices. The industry load is high, and downstream demand is weak. Market confidence has weakened, and the profitability of enterprises has significantly declined. As the end of the year approaches, the expectation for increased consumption in the future is relatively low, and the market is unable to change the bearish guidance situation. It is expected that the EVA market will remain stagnant and consolidating in the short term.

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