[EVA Daily Review] Market Sentiment Is Dull, Trading Is Flat

1 Today's Summary

1. This week, EVA petrochemical ex-factory listed prices rose slightly within a narrow range.

② This week’s EVA petrochemical units: Ningbo Formosa will shut down for maintenance from June 1 to June 15; Sinochem is shut down for a major turnaround; Yangzi is shut down for a major turnaround; Yanshan Petrochemical’s three EVA units have been shut down for an extended period; all other units are operating steadily.

Table 1 Domestic EVA Price Summary (Unit: RMB/ton)

Today, the domestic EVA market sentiment was subdued. News that some petrochemical producers plan to switch to EVA production weighed on market confidence. Downstream buyers mainly purchased based on rigid demand, while holders sold in line with the market. Overall market transactions were weak. Mainstream prices: soft material was quoted at RMB 9,200–10,200/ton, and hard material was also quoted at RMB 9,200–10,200/ton.

Figure 1 Domestic EVA Price Trend Chart (Yuan/ton)	Figure 2 Domestic EVA price trends by category (CNY/ton)
Data source: Longzhong Information	Data source: Longzhong Information

3 Production Dynamics

Domestic EVA petrochemical units: Zhonghua Quanzhou is shut down for turnaround maintenance; Jiangsu Sirbon’s tubular unit is producing high-pressure grades, and the autoclave unit is producing UE19150; Jiangsu Hongjing’s PV1 and PV3 lines are producing photovoltaic-grade material, while PV2 is producing foaming grade 6020M; Ningxia Baofeng is producing hard grade 1803C; Yanchang Yulin is producing foaming grade V6020M; Tianli High-tech has halted production for 3 days; Gulei Petrochemical is producing USI-629; Yangzi Petrochemical is shut down for maintenance; all three EVA units at Yanshan are shut down.

In addition, the main soft-material prices in the South China market are RMB 9,200-10,200/ton, and the gross profit level of China's EVA industry is -200.around RMB/tonne 。

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

4 Price Prediction

In the short term, cost-side support remains relatively weak. Some petrochemical producers plan to switch from LDPE to EVA production, and there are numerous changes in upstream plant operations, but overall supply remains ample, while the outlook for new downstream orders is hardly optimistic.Spot demand absorption remains slow.The overall supply-demand situation remains under pressure. The domestic EVA market is expected to fluctuate weakly and remain stable in the near term.Pay attention to the procurement schedule for photovoltaic film manufacturers and the production and conversion status of petrochemical units.

5 Related product information

1 Ethylene: On June 8, CFR Northeast Asia was steady at $920/ton, and CFR Southeast Asia was steady at $950/ton. Sinopec Chemical Sales East China Branch raised its ethylene offer by RMB 100/ton to RMB 7,900/ton, and Jinshan Lianmao’s ethylene offer was also adjusted to RMB 7,900/ton.

2 Vinyl acetate: Mainstream negotiations for non-calcium-carbide-process vinyl acetate in the East China market are at 6,000–6,300. yuan/ton, with mainstream negotiations for the calcium carbide process at 5,700 yuan/ton. The market is largely wait-and-see, and the negotiation focus is consolidating within the range.

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