SunSirs: China EVA Market Declined in December 2023

In December, the domestic EVA market experienced a significant decline, with spot prices falling and then trading sideways. According to the Commodity Market Analysis System of SunSirs, as of December 29th, 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 saw a decline in prices this month. On the supply side, the load level of domestic EVA enterprises continues to rise. The operating rate fluctuated from 80% at the beginning of the month to nearly 90% at the end of the month, and the market supply remained 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 the end of month 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.

The weak demand side performance of EVA this month continues. 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, the decline in EVA prices in December was concentrated in the middle of the month. The raw material market provides moderate support for EVA spot prices. The industry load has increased at a high level, and downstream demand is weak. The confidence of business owners 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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