[EVA Daily Review] Market Offers Rise, Some Sellers Hold Back

1 Today’s summary

This week, the posted ex-factory prices of EVA petrochemical products were adjusted downward steadily.

This week, EVA petrochemical units: Ningbo Taisoo will be shut down for maintenance from June 1 to June 15; Yangba will stop production for troubleshooting; Tianli will have a short shutdown; Yangzi will undergo a major shutdown for maintenance; Yanshan Petrochemical's three EVA units are in prolonged shutdown; other units are operating stably.

Table 1 Summary of Domestic EVA Prices (Unit: yuan/ton)

Today, the domestic EVA market reported a slight increase in prices, with some petrochemical and auction sources raising their prices. Transactions were good, and stockholders were hesitant to sell, raising their offers. Downstream purchasing focused on low-price inquiries, resulting in average market transactions. Mainstream prices: soft grade reference at 9200-10200 RMB/ton, hard grade reference at 9200-10200 RMB/ton.

Figure 1 Domestic EVA Price Trend (Yuan/ton)	Figure 2 Domestic EVA Price Trend Chart by Category (RMB/ton)
Data source: Longzhong Information	Data Source: Longzhong Information

3 Production Dynamics

Domestic EVA petrochemical units: Sinopec Quanzhou produces EVA: V1815; Jiangsu Sirbon’s tubular unit produces high-pressure products, and its autoclave unit produces UE28150; Jiangsu Hongjing’s PV1 and PV3 production lines produce photovoltaic-grade material, and PV2 produces foaming grade 6020M; Ningxia Baofeng produces hard grade 1803C; Yanchang Yulin produces foaming grade V6020M; Tianli Hi-Tech is shut down for 3 days; Gulei Petrochemical produces USI-629; Yangzi Petrochemical is under shutdown for maintenance; all three EVA units at Yanshan are shut down.

In addition, the price of soft material in the South China market is mainly 9,300-10,200 yuan/ton, and the gross profit level of the domestic EVA industry is -200.yuan/ton 。

Figure 3 Trend Chart of Domestic EVA Capacity Utilization Rate	Figure 4 Domestic EVA Profit and Price Comparison (Yuan/Ton)
Data source: Longzhong Information	Data source: Longzhong Information

4 Price prediction

In the short term, the support from EVA cost is relatively weak, and some petrochemical inventories need to be alleviated. The news about planned shutdowns in some petrochemical sectors has not yet materialized recently, leading to a cautious and wait-and-see attitude among industry players.Downstream buyers’ willingness to enter the market for procurement remains mainly driven by essential needs.The overall supply-demand situation remains under pressure. The domestic EVA market is expected to fluctuate weakly and steadily in the near term.It is necessary to monitor the procurement timing of photovoltaic film manufacturers, as well as the production and grade-switching status of petrochemical units.

5 Related Product Information

1 Ethylene: On June 1, CFR Northeast Asia is stable at $930 per ton, and CFR Southeast Asia is stable at $1,100 per ton. Sinopec Chemical Sales East China Branch’s ethylene offer remained steady at RMB 8,000/ton, and Jinshan Lianmao’s ethylene offer was also adjusted to RMB 8,000/ton.

2 Vinyl acetate: In the East China market, the mainstream negotiated price for non-calcium carbide route vinyl acetate is 6,000. The mainstream negotiation price for calcium carbide is 5700 yuan/ton, with users inquiring based on essential demand. There are few reports of actual transactions, and the overall atmosphere is subdued.

Table 2 Overview of Domestic EVA Data (Unit: 10,000 tons)