EVA Prices Plunge in May, Accelerating the Deflation of the High-Level Bubble

In May 2026, the domestic EVA market experienced a cliff-like decline, with prices generally falling by more than 1,000 yuan since the beginning of the month, and some grades seeing even larger drops. Market sentiment quickly shifted from earlier strength to pessimism, and trading remained sluggish. This sharp downturn was not accidental; it was the result of weak demand, the bursting of earlier speculative bubbles, and the combined impact of chaotic import quotations.

The continuous weakness on the demand side is the main drag. In the photovoltaic sector, the previous rush for orders following the adjustment of export tax rebates has subsided, and film manufacturers are only engaging in essential purchases with a very low willingness to stock up in bulk. The traditional foam, footwear materials, and hot melt adhesive industries are particularly in a clear off-season, with insufficient downstream orders and strong resistance to high-priced raw materials. Overall transactions are mainly small and scattered orders, making it difficult to form effective support.

Data source: Jin Lian Chuang

On the supply side, things may appear loose, but in reality operating rates are not high. Enterprises are generally cutting production on their own due to insufficient orders, yet demand is even weaker, leaving spot supplies still ample. Traders are under greater inventory pressure and have a strong willingness to cut prices to move goods and recover cash, which further drags spot prices down.

The import market was in disarray, intensifying a wait-and-see mood in the market. Most foreign suppliers, including Lotte, Hanwha, and Saudi producers, basically suspended quotations in May, with actual deals being few and far between. Only a small amount of low-end material was quoted sporadically, with limited impact on the domestic market. More importantly, the price increases driven by the geopolitical conflict in the Middle East in April contained obvious speculative elements; prices had become inflated and detached from fundamentals. As sentiment eased, the bubble quickly burst, and the price declines in May clearly reflected a strong “return to rationality” pattern.

The support from the cost side is also weak. With crude oil and ethylene prices retreating from their highs, the production cost support for EVA has weakened, and manufacturers have lost their confidence in maintaining prices. Under the combination of multiple bearish factors, market sentiment is cautious, quotes continue to decline, and the downward trend is difficult to stop.

Overall, the sharp decline in EVA in May was driven by weak demand, the fading of speculative activity, and a cautious stance on imports. In the short term, the market is likely to remain weak and volatile, with prices potentially continuing to bottom out until downstream orders show a substantial recovery, at which point market confidence may gradually improve.