SunSirs: Mid Stream Replenishment, China EVA Market is on the Rise

Last week, the domestic EVA market turned positive, with spot prices increasing slightly. According to the Commodity Market Analysis System of SunSirs, as of January 26th, the benchmark price of EVA in China was 11,600 RMB/ton, with a price increase or decrease of +1.46% compared to the beginning of the month.

The domestic EVA market has seen a steady increase in prices this week. On the supply side, the load level of domestic EVA enterprises has significantly decreased in the early stage, and last week the operating rate narrowly rebounded to around 77%, indicating a continued tightening of market supply. Petrochemical plants have a strong willingness to support the market, and EVA suppliers have decent support for spot goods.

Last week, the demand side of EVA showed an upward trend, with on exchange transactions focused on mid stream replenishment. The overall stocking and follow-up situation of terminal enterprises is poor, and the logic of buying on dips remains unchanged, with some resistance to high priced sources. On the merchant side, due to the impact of industry load reduction in the early stage and recent destocking, the current active procurement operation and reluctance to sell have formed certain support for the demand side.

Overall, last week the price of EVA changed from sideways to upward. The support of raw material market for EVA spot is moderate. The industry load has remained stable and slightly increased, while petrochemical plants remain strong in the market. Downstream demand is improving due to restocking operations by traders, but as the Spring Festival approaches, downstream enterprises will compete for holiday arrangements in the future, with low expectations for increased consumption. It is expected that the EVA market will mainly focus on consolidation and operation in the short term.

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